Tata Motors, in the year 2008 astonished the whole world with the launch of its smallest car 'Nano', pricing it at just $2600 and fulfilled the dreams of millions to own a car. It seems that Japanese motorcycle brand Yamaha Motor Co. has sought inspiration from Tata Motors and is planning to develop its cheapest motorcycle in India. The motorcycle will be sold with an affordable price tag of about $500 only.
Being one of the biggest two-wheeler markets, India has the capacity to absorb lot more units of motorcycles, especially the entry-level motorcycles with 100-125cc engine capacity. Yamaha currently sells numerous premium models in India but offers only two 110cc models in the economical range, Crux and YBR. Yamaha is facing immense competition from other established two-wheeler brands such as Hero MotoCorp, Bajaj and Honda, especially in the economical segment. A steep rise in fuel prices has led to an increased demand of vehicles with better fuel-efficiency, which has further intensified the competition.
In a recent interview, Mr. Hiroyuki Suzuki, chief executive of India Yamaha Motor Pvt. Ltd., said, “Just about one in every 25 people in India owns a two-wheeler". Yamaha hopes that its $500 motorcycle will become an alternative for those using public transport, which is cheaper for daily commuting but not reliable. It may provide a sense of relief to those who wish to buy a cheaper motorcycle but cannot afford the currently available options of the market. The launching of this Yamaha model may not be heavy on the pocket but can augment the already poor traffic situation of India.
Other deciding factors of the model's success in India will be its fuel-efficiency, power, endurance and performance on both city and countryside Indian roads. Yamaha has plans to invest a significant amount on development of new products and is aiming high to increase its market share from the current 3.5% to 10% by the year 2016.
