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Yamaha Plans to Export One-fifth Bikes from India

Japanese motor maniac, Yamaha Motor Corporation Ltd.(YMC) dreams to throttle its motorcycles into a central position in the Indian two wheeler market by 2016. An investment of Rs.1500 crore to build the Asia's biggest Yamaha plant and R&D centre in Tamil Nadu, YMC is eyeing to incline its stake by 10%. The new plant in T.N. is expected to commence functioning by 2014 and will have a capacity of 1.8 million units by the year 2016.

Yamaha Plans to Export One-fifth Bikes from India

In the last fiscal year YMC manufactured 5,20,000 units. "The new plant coming up in Tamil Nadu will add another 1.8 million units over the next five years. We want a 10% share of the two-wheeler market here by 2016" said Hiroyuki Suzuki, Managing Director and Chief Executive Officer of India YMC.

Clearly the company's portfolio is to compete in the 150cc segment. The brand already possess world class bikes in this segment. The bikes such as R15, FZ variants and Fazer furbish Yamaha's brand value. "Our focus, as of now, is the 150-cc segment. The 150-cc models will account for 40 per cent of overall volumes, while entry-level products such as the YBR 110 and Crux will bring in the remaining numbers" added Suzuki.

Yamaha Plans to Export One-fifth Bikes from India

Showing no attentiveness to compete in the commuter segment except the coming cheapest bike, Crux which is expected to be priced at Rs.27500. The Indian motorcycle manufactures are known for their commuter bikes which are preferably economical and cheaper. Unless Yamaha introduce more bikes in commuter segment, it would be hard for them to gain more market shares.

Yamaha Plans to Export One-fifth Bikes from India

However, the R&D centre to be operated in Chennai will be a new milestone to the Indian automobile industry. Concerning the TN plant Suzuki said, "In future, our R&D team should be independent for developing the new motorcycle in the commuter segment. The R&D team here has 70 engineers. We already have a test-track near Chennai. A fifth of our total production would be exported from India by 2018. We already export bikes from the R15, FZ and SZ zeries to over 40 countries in Latin America, Africa and South-East Asia. The plan is to export premium products to countries in South America and the Asian region, while entry-level products would be shipped to Africa."

Yamaha Plans to Export One-fifth Bikes from India

Meanwhile the company also focuses on scooter segment and is also set to launch its first scooter in India soon. The 30% of YMC production will be scooters.

Last updated on 27-06-2012. Published on 27-06-2012. Written by .
Category: News
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