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Thread: Yamaha to make India an export hub !

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    Rusted Rony's Avatar
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    Thumbs up Yamaha to make India an export hub !

    Posted: Wed, Mar 23 2011. 1:00 AM IST

    Japan’s Yamaha Motor Co. Ltd plans to expand capacity and export motorcycles made in India to Africa and South America in a bid to turn its local business profitable after more than 25 years.

    “We are in a very severe condition,” Hiroyuki Suzuki, the new managing director and chief executive of India Yamaha Motor Pvt. Ltd, said in an interview on Friday. “But we aim to break even by 2013 as we are increasing our production capacity.”

    The company manufactures 600,000 motorcycles a year at its Greater Noida plant. “We plan to raise the capacity of this plant to one million and, by 2013, in the domestic market we aim to sell 800,000 units and 200,000 to be exported,” Suzuki said.

    Yamaha entered India in 1985, partnering tractor maker Escorts Ltd. In 15 years, it sold 2.5 million bikes in the country, cornering 7.2% of market share. In 2000, trying to compete with more fuel-efficient bikes, Yamaha started making low-end models. Its market share fell to 3.6% by 2005-06, and to 2.35% by 2010-11. In the 11 months to February, however, sales rose 22.55% to 251,762 units on the back of India’s economic growth. The company has sold more than five million motorcycles in India to date, a spokesperson said.

    “The problem with Yamaha... has been of establishing a single brand in the Indian market like (Bajaj Auto Ltd’s) Pulsar, (Hero Honda Motors Ltd’s) Splendor or Passion,” said Jatin Chawla, sector analyst, India Infoline Ltd, a Mumbai-based brokerage. “Also, they went into the entry-level segment, where you have volumes but no margins. So, Yamaha could neither gain volumes nor margin.”

    Suzuki said he plans to sort these issues over the next two years. Yamaha, he said, is doing a feasibility study to make India an export base for Africa and South America.

    “The African markets need basic models such as Crux and FZ and we will export YBR to South America. In Africa, you see three types of motorcycles—mopeds, scooters and street models of motorcycles. These motorcycles are also used for commercial purposes. I mean a rider can have two pillion sitting behind him and he can charge fare from them. So, we will have to change specifications of the bikes, which we plan to export,” he said. Suzuki said the company will also strengthen its research and development division in India with the help of Yamaha Japan to support its export plans.

    Up to one million bikes are sold in Africa annually, according to Sugan Palanee, senior partner, auto practice, Ernst and Young Africa. Bajaj Auto, the only Indian motorcycle manufacturer that exports to Africa, has around 25% market share in the entry-level segment; Chinese manufacturers have the rest.

    Suzuki said Yamaha plans to diversify in India too. “We may need at least two years before we come up with a scooter in the 150cc segment,” he said. “Going forward, we will bring in motorcycles in the range of 200-250cc.”

    Source: Yamaha to make India*an*export*hub - Home - livemint.com
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    Quote Originally Posted by Rony View Post
    “Going forward, we will bring in motorcycles in the range of 200-250cc.”
    veryyyy tempting news

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    So what Kawasaki did a little over an year ago & what HMSI is doing right now will take "Going Forward" time for YMIS. Good joke!!! Do they want to stay in business or not? At this rate, they'll fall even behind HH in terms of sales!!!
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    Quote Originally Posted by Naveen1985 View Post
    veryyyy tempting news
    Alas, these news dont tempt me anymore..

    I have seen this happen, company market heads predict product lineup for future and production lines just laugh at them "In your dreams "

    Anyways will wait for any concrete information, (like the 1 we got during the launch of CBR250 and Brio) and then will get tempt

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    Quote Originally Posted by aargee View Post
    So what Kawasaki did a little over an year ago & what HMSI is doing right now will take "Going Forward" time for YMIS. Good joke!!! Do they want to stay in business or not? At this rate, they'll fall even behind HH in terms of sales!!!
    +1

    I know 60% of the market sales is on 100-110cc.
    But, the rest 40% has higher profitability margins, that it shouldn't be ignored the way, Yamaha is ignoring now.

    This news ain't exciting. Because, by this rate we should get a home-bred FZ6/ R6 by 2020. Wow Yamaha?!


    My opinion only: I'm beginning to hate Yamaha. Lethargic excuse makers & CEO Exchangers! Neither they have the fastest products anymore, nor the most fuel efficient.
    Last edited by Samarth 619; 03-25-2011 at 02:25 AM.

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    Quote Originally Posted by kanishka007 View Post
    Anyways will wait for any concrete information, (like the 1 we got during the launch of CBR250 and Brio) and then will get tempt
    I agree. Not only Yamaha. We are hearing from other makers too the similar kind of news. Rumors or not, I ll wait for the official release before getting tempted.

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    Rusted payeng's Avatar
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    Yamaha to make India an Export hub..??

    But Yamaha India have been already exporting its made in India bikes to countries like Colombia and Indonesia.. maybe this articles means that they want to export to even more counties from India.




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    Now they're just planning to put a Made in India tag on more of their products.

    Going are the days of Made in China (known for fragility), Welcome the days of Made in India (known for quality, longetivity, reliability)
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    Something like high-revving Gladiator 200 should enter Indian Performance Bike segment. It would set the pulse racing for the power-hungry youth....
    game for anything on wheels

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