Europeans to ride Indian made Yamaha bikes

Yamaha to export bikes from India 

Yamaha which makes every possible move to revive its Indian operations will soon export bikes from India. Yamaha will begin selling Indian-made motorcycles in Europe as early as next year, President Takashi Kajikawa said. Though Indian market is still a larger market the motorcycle, the sales has been declining and yet it is dominated by 100cc bikes. Hence prominent makers like Bajaj and TVS already making significant amount of money from overseas market.  Many car manufacturers across the world are already using India’s engineering expertise and low cost advantage. Yamaha which is desperate to turn its Indian operation a profitable one will use the same strategy. “We want to turn the Indian operation to profit as soon as possible with the help of exports,” Kajikawa said. “Our top priority is to fill the production capacity.” The company will export motorcycles specifically developed for the Indian market with engine capacity of more than 125-cc, Kajikawa said. Yamaha will use the investment to develop higher-end models in a country where entry-level 100-cc motorcycles are the most popular, Kajikawa said. Yamaha will sell more powerful motorcycles, a shift from its current low-priced line-up. Currently, Yamaha uses 33 percent of its manufacturing capacity in India and hence it has lot of room to produce and sell motorcycles.

Yamaha’s has been posting losses since 2001 and its market share has plunged below 5%. In 2007 Yamaha sold only 120,000 units last year in 6 million market. But it started making serious steps to revive its indian operations, Yamaha said it would invest Rs696 crores over the next three years to increase sales more than five-fold to 650,000 units in 2010. Yamaha recently sold 30% stake to Mitsui of japan and formed a new venture called India Yamaha Motors.

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