Yamaha Motor India is evaluating a capacity expansion as it doubles down on premium models to increase its market share in India’s fast-growing premium motorcycle segment.
“Currently, we have almost 1.5 million vehicles capacity (per annum). My feeling is that within 2-3 years this capacity is going to be fulfilled. In that case, we have to start something for the expansion of the plants,” Hajime Aota, Chairman, Yamaha Motor India Group, said during a media briefing here on Thursday, without specifying any investment commitments.
Yamaha Motor India currently has an installed capacity of around 1.5 million vehicles annually across its two plants in Surajpur, Uttar Pradesh, and Kanchipuram, Tamil Nadu. The Kanchipuram facility accounts for around 60% of the company’s total manufacturing capacity.
Aota said the company has recently completed the second line of engine manufacturing at its Kanchipuram plant, providing scope to increase capacity in the southern region.“I cannot say the details but we can increase some capacity in the South side. The question is whether we got to do this or we got to do the other investment on the other location or other price. That’s another thing we need to consider.” he said.
The potential capacity expansion comes as Yamaha Motor India strengthens its product portfolio and sharpens its focus on the premium sportbike segment. The company on Thursday marked the global debut of the Yamaha YZF-R2 in India, entering the 200cc sports bike segment. The R2 series is available in three variants, with ex-showroom prices ranging from ₹2.30-2.53 lakh.
The launch comes at a time when premium motorcycles are growing faster than the broader two-wheeler market. Industry volumes increased 21% to 10.67 million units in the first half of 2026, while the premium segment expanded 37% to 1.04 million units. The deluxe motorcycle segment grew 26% to 9.10 lakh units, while scooter volumes increased 28% to 3.68 million units during the period.
Yamaha has outpaced the overall market, with its first-half volumes rising 41% to 4.1 lakh units from 2.9 lakh units a year earlier. Its premium motorcycle portfolio grew 49% to 1.36 lakh units, while deluxe motorcycle sales increased 25% to 86,000 units. Scooter sales rose 38% to 1.88 lakh units.
Despite this, Yamaha remains a relatively small player in India’s two-wheeler market, with a share of just over 5%. Aota said the company’s strategy is focused largely on motorcycles in the 150cc-plus premium segment, unlike several other manufacturers that have a larger presence in the broader 110cc commuter segment.
“We are focusing on the premium market and still the country’s entire market is including the basic side of that. The entire market share of the motorcycle industry in India has no big meaning for my team and myself.” he said.
Yamaha is targeting sales of more than 1.1 million units, including exports, in 2026. The company is also targeting annual sales of 50,000 units for the newly launched YZF-R2 in India in the first year. “The rolling target for one year is 50,000 units,” Aota said.
Yamaha’s immediate priority will be the domestic market, with exports planned after the model gains traction in India. The company maintains a 70-30 mix between domestic sales and exports.
