Japanese bike manufacturers to increase their market presence

Yamaha Motor is joining other Japanese competitors to add motorcycle capacity in Asia's second-fastest growing major economy, India, relaying on the fact that demand from Indians seeking personal transportation will sustain.

Yamaha's local unit will invest Rs 800 crore ($151 million) to triple capacity by March 2013, it said in a statement yesterday. And, Suzuki Motor Corp will spend Rs 100 crore to produce more two-wheelers, Atul Gupta, vice president for sales and marketing at the local unit, said in New Delhi.



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. Prime Minister Manmohan Singh said last month India will return to 8.5 - 9 per cent trend growth after the global economy stabilises.

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

Yamaha will raise annual motorcycle and scooter capacity to a million units from 330,000, Kurian said. The Iwata City, Japan- based company introduced its first scooter in India yesterday. Suzuki Motorcycle India Ltd, the wholly-owned subsidiary of the Hamamatsu, Japan-based company, will increase capacity to 540,000 units by 2013 from 360,000 now, Gupta said.