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Yamaha Shifts Focus To India As Global Demand Decelerates
Yamaha is a marginal player in the 94 lakh units of Indian two wheeler segment.
Yamaha sells a mere 2.2 lakh bikes. But now, the Japanese two-wheeler major is making aggressive moves to sell 10 lakh bikes in the next couple of years.
And the launch of new products like YBR125, SZ and SZ-X priced competitively between Rs. 47000 to Rs. 52000 (ex-showroom, Delhi) will help the company acheive its target.
According to Yamaha Motor Co Director and Managing Executive Officer (Motorcycle Business Operations) Yoshiteru Takahashi, Asian countries like India, Thailand, Indonesia, Vietnam and Philippines are having good demand for bikes and hence Yamaha is now concentrating on these countries.
He added that India is most important market for Yamaha. Yamaha has plans to launch scooters too, besides motorcycles.
According to India Yamaha Motor Chief Executive Officer and MD Yukimine Tsuji, the company invested Rs. 800 crore in 2007 and has spent Rs. 600 crore so far, the rest of which will be used in the upcoming years for growth activities.
"The Indian market will grow more and we will concentrate the motorcycle segment. We are planning to invest more here for future models, including production of scooters," Takahashi said, adding that the company would look at India and China for low-cost production.
India Yamaha Motor Chief Executive Officer and MD Yukimine Tsuji said the company had earmarked a Rs 800 crore investment for its Indian operations three years ago, out of which Rs 600 crore has already been put in and the remaining will be utilised in the coming years.
Yamaha India, manufacturers its bikes in Uttar Pradesh and Haryana both of which have a combined production capacity of 6 lakh units a year and the company distributes its bikes through 1,000 outlets, which will be ramped up to 2,000 sales points in the next 3-4 years.
Yamaha and Honda are two key players in the Indian market who have great expertise in providing frugal products in a cost effective manner. With the launch of new products, domestic players like Bajaj and TVS may face stiffer competition, but Indian customers can assure that they will have more options to buy through this healthy competition.
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