Yamaha Wants India To Be Export Hub For Africa And South America

Yamaha is eyeing India as the next export hub for African and South American countries. As per the new MD & CEO of India Yamaha Motor, Hiroyuki Suzuki, the company is planning to increase the production capacity and export bikes as well; this increased capacity will help to export motorcycles to South American and African countries. The end result will be more profit to domestic business right after 25 years.

Yamaha Motor Co. came in India in 1985 and for a long period of 15 years, the couldn't do well in the market and only 2.5 million bikes sold in the country with market share of 7.2 per cent. In 2000, the company entered in fuel-efficient and entry-level bike segment but market share fell to 3.6 per cent by 2005-06, and 2.35 per cent by 2010-11. But in current financial year, the company reported 22.55 percent growth with sales of 251,762 units in the market. And till now, Yamaha sold more than 5 million two wheelers in India. Its best selling bike models are pumping the sales such as Yamaha SZ, Yamaha FZs, Yamaha R15, Yamaha Fazer and Yamaha Crux.

For two years, the company has been launching cutting-edge technology loaded and sporty bikes in India and due to these reliable and well performer bikes, the company getting buzz response and reported surprising growth.

The overwhelmed company aims to increase its production capacity by the year 2013. At present, production at Greater Noida Plant accounts to 600,000 bikes a year. It wants to increase the capacity of this plant up to one million by year 2013. Yamaha wants to sell 800,000 units in domestic market and to export 200,000 units to other countries.

India Yamaha is facing tough competition from Bajaj Pulsar, Bajaj Discover, Hero Honda Splendor, Hero Honda Passion Pro, Honda Twister, Honda Stunner, etc. and it aimed to bring some new bikes in India within two years. Meanwhile the company is doing a feasibility study to make India an export base for Africa and South America. The company is to export Yamaha Crux, Yamaha FZ and Yamaha YBR to South America and three types of bikes, mopeds, scooters and street models of motorcycles to Africa.

Most of its entry-level bikes are being used as commercial vehicles hence it will change specifications of the bikes which will be exported. It is also mulling over to set up  a research and development division in India with the help of parent company Yamaha Japan. On the other hand, Yamaha plans to launch a 150cc scooter and 200 to 250cc segment bikes against Honda CBR 250R, Bjaja Pulsar, TVS Apache, Hero Honda Karizma and Kawasaki Ninja 250R.