The motorcycle had started production in the company’s southern facility early-March and has kicked off exports in volumes of 50-100 units soon after.
Sanjiv Paul, senior VP –manufacturing group, India Yamaha Motor, said the parallel production of the FZ models has started in Chennai. Due to proximity to the local port, Chennai was an important hub for export of scooters.
The two-wheeler maker is gunning for exports of 1,200-1,400 FZ bikes by May-end to markets as varied as Columbia, Argentina, Guatemala, Honduras, Nepal, Bangladesh, Chile, Peru and Mexico. Thereafter, over 1,400 units will be exported monthly from Chennai.
These markets are being developed further to create more demand for the FZ model, company sources told ETAuto.
Additionally, the plan is to service the southern zone with the Chennai plant and save on logistics costs. Gradually export volumes are being shifted to Chennai due to global demand for orders and cost competitiveness.
The export dispatches to Sri Lanka first is due to its close proximity to Yamaha’s southern plant and because of the demand for the FZ model there.
Currently, 24,000 units of the FZ bike are made at Surajpur in Greater Noida and the motorcycle will continue to be produced here as well as in Chennai. About 7,000 units of the FZ models have been made so far at Chennai from inception.
Overall Yamaha exports about 25-30 per cent of its production with 70 per cent targeted at the domestic market, Paul added.
According to SIAM data, Yamaha exported 251,920 units in 2017-18, a growth of 46.79 per cent with domestic sales pitching in with 792,812 units. Of this the FZ bike, Fazer, SZ and R15 accounted for exports of 112,596 units with domestic sales contributing 273,335 units.
In CY 2018 the target for overall exports for IYM is 300,000 units. In CY2017, Yamaha touched 1-million units in terms of total sales (exports and domestic sales) and the target for CY 2018 is 1.2 million units.
The company’s Chennai plant, which went on stream in 2015 with a production capacity of 4.5 lakh units, is close to 6 lakh units currently and will achieve full production capacity of 9 lakh units in 2019.