In order to design cheapest motorcycle in India and increasing its share in the domestic market, Yamaha Motor Co Ltd. is increasing its research & development (R&D) in the country.
Chief Executive Officer and Managing Director of India Yamaha Motor, Hiroyuki Suzuki, said,” Until this year, basic development of products was being done by Yamaha at our headquarters in Japan. We have an R&D centre to make minor changes on models in India. In future, our R&D team should be independent and capable of developing a new motorcycle in the commuter segment.”
For increasing the R&D activities in India, the company is working on the investment plan. The new low-cost bike of Yamaha is expected to carry a price tag of Rs.27,500 ($500). It will be cheaper than Crux, the entry-level motorcycle, which comes with a price tag of Rs. 38,365. In the category, CD Dawn from the house of Hero MotoCorp Ltd. is the cheapest bike as it comes with a starting price of Rs. 36,300 (ex-showroom, Delhi)
With its YBR110’ and ‘Crux’, Yamaha holds little share in the low-cost commuter segment of India. These two models together comprise 5000-odd units monthly sales.
Even Honda Motor Co Ltd. (HMC) now participates in the race of low cost motorcycles launching the 110 cc ‘Dream Yuga’, in India. The bike with an ex-showroom price of Rs. 44,642 is expected to push Honda’s market share in the country.
Suzuki said “We will have production volume of two million units in 2016. Scooters will contribute 30 per cent to our overall sales, the 150 cc models will account for 40 per cent and the remaining numbers will come in from entry-level motorcycles.” By 2016, the company expects to acquire 10 per cent share in the two-wheeler market of India.
In order to establish a new plant in Tamil Nadu and boost the capacity of its existing units, Yamaha announced an investment plan of Rs. 1,500 crore. The company will manufacture a low cost bike in the new facility at Chennai. As per reports, the bikes will also be exported to the African market.
