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Yamaha India is all set to strengthen its rural market
Yamaha might have read somewhere in the history book that Agriculture is the back bone of India and 70% of population resides in rural areas of the country. Also, the No.1 two wheeler maker Hero Honda is focusing on expanding its dealership activities in non-urban areas.
According to automobile analysts, since Urban commuters are slowly moving from two wheelers to cars, the two-wheeler's future lies more in the rural and semi-urban regions. This is quite obvious as cars like Tata Nano, starts at 1.5 lakh rupees on road, and the mileage of such small cars are almost would claim a 40% more fuel expenses per month, which the urban working mass are able to afford easily nowadays, thanks to the strong income growth.
SIAM stated that the total number of motorcycles sold has rised up to 26% based on the sales between March 2009 to March 2010 and Yamaha has sold 2,23,305 units locally in this period. The motorcycle major, Hero Honda's contribution is a massive 58% of the total country's two wheeler sale, out of which, 40% was from business done in villages.
Yamaha believes in "Word of mouth" method where the existing customers give a good feedback to their well wishers and thereby the new customers buy the vehicles trusting the "word of mouth" of their known people. Hence, it is vital for the company to establish good relationships with its customers who own Yamaha bikes. This is where "Yamaha Bike Corners" outlets comes in to small towns and rural areas. Yamaha customers can get exclusive free services and test rides in Yamaha Bike Corners.
Yamaha in India produces 6 lakh units per annum and all of them are bikes. But, on careful study of the Indian two wheeler market, the sales of scooters has made an impressive rise upto 27% during 2009-2010 period. This clearly indicates a need for more scooter variant. Yamaha has some plans to launch scooters soon!
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