Yamaha Motor Co. said Monday it will build its second motorcycle assembly plant in India in the southern city of Chennai.
The company plans to begin construction by the end of this year, aiming to start operations in 2014.
Including its existing plant near New Delhi, the company plans to raise its annual production capacity in India to 2.8 million units by 2018, 4.7 times more than the current capacity, to cope with surging demand for scooters.
The target includes 1.8 million units at the new plant.
The company plans to spend 15 billion rupees.