Yamaha Motor is joining other Japanese competitors to add motorcycle capacity in Asia’s second fastest growing major economy, betting demand from Indians seeking personal transportation will sustain.

Yamaha Motor in a statement said that its local unit will invest INR 800 crore (USD 151 million) to triple capacity by March 2013. And Suzuki Motor Corp will spend INR 100 crore to produce more two wheelers.

Honda Motor, which reiterated a plan to almost double two wheeler capacity in India by 2013, and other Japanese motorcycle makers have unveiled new models at the New Delhi auto show, counting on economic growth to generate demand.

Mr Roy Kurian national business head of India Yamaha Motor said that “The last two years were exceptional and we have seen a normalising in the market. We have no reason to believe our sales will tumble.”

(Sourced from Bloomberg)