"The company would be expanding its existing production capacity at Faridabad, Haryana to 5 lakh units per year from the existing 3 lakh units. This would need about Rs 70-80 crore (Rs 7 to 8 billion)," H Yanagi, CEO and managing director, Yamaha said while unvieling new variants of its model 'Fazer'.
Overall, the company would spend about Rs 150-200 crore in next three years on capacity expansion and product development, A V Srinivasan, YMIL director and executive vice-president (marketing) said.
The company, which saw its domestic sales drop to 15,278 units in May this year from 20,954 units a year ago month, is expecting to touch a sales figure of about 3 lakh units by the end of this year and touch the one million mark in the next four years, Srinivasan said.
Explaining the drop in sales, he said the company was on inventory correction mode since the middle of last year, even as its retail sales outnumbered the wholesale.
Yanagi said the company also planned to roll out three-four new products by the end of this year in a bid "to claim 10 per cent share of the highly competitive bike market".
"These will be the variants of the existing models and would be rolled out by the end of this year," he said, adding Yamaha was also mulling over bigger bikes in the above 150 cc category.