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Yamaha stays on track to meet targets for India
The two-wheeler company, fifth biggest bike producer in the country, is finalising details of its third facility (it would be its second vehicle-manufacturing plant), that would enable it to increase its 10 per cent targeted market share over the next two years.
Although company officials did not comment on the size of the proposed new plant, sources said it would have a capacity to churn out more than one million units per annum.
Yamaha is presently expanding capacity at its Surajpur, Uttar Pradesh, plant by 66 per cent to one million units from 600,000 units annually, at present. The company is spending Rs 50 crore towards this expansion.
This will allow it to make automatic scooters and the new line of motorcycles it is planning for launch in India. These include a new motorcycle on the lines of the SZ series and perhaps a 200cc bike, though the Yamaha India management did not confirm this.
Yamaha's stronghold has been the 150cc bike segment where it has four models with seven variants. It sells the R15, FZ, Fazer and SZ series in this segment. The company claims to have increased its market share in this segment to 17 per cent from 14-15 per cent recorded during the middle of the year.
Pune-based Bajaj Auto, which makes the Pulsar range of motorcycles, is the market leader in the segment above 150cc and up to 225cc, with a share of 50 per cent. Others such as Hero Motocorp, TVS Motors, Suzuki Motorcycle and Honda Motorcycle and Scooter also have products in this segment.
To make inroads into the rural areas, the company is setting up 400 miniature sales points that will act as extension counters for its dealers. These compact dealerships will help improve the company's presence in Tier-III cities and the alike.
Meanwhile, the company has denied plans of partnering with Mahindra 2-Wheelers, the two-wheeler company of the Mahindra & Mahindra group. Reports suggested Yamaha was exploring a tie-up with Mahindra 2-Wheelers through either an equity participation or a technology-licensing pact.
Source: Business Standard
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