The Japanese motorbike giant, Yamaha, is on the verge of firmly footing its stand in the Indian market by doubling its sales –to 1.4 lakhs in 2010 -, increasing its domestic market by launching new models. With its latest launch of iconic bike VMAX (Rs20 lakhs) the company is mooting the idea to top the list among the high end bike makers. The target for this year is 70 lakh bikes export which is to be doubled in 2010, the company hopes. This is an increase in the target from 40000 units done in 2008 from India, the market which happens to be the ideal hub for the company’s export activities for 150 cc bikes.
The models currently dealt with by the company are Fazer, FZ-6, FZ 16 and YZF-R15. Yamaha is no exception to the global recession with its export sliding down from its previous year’s (2007) 50000 units. The company seemed to have recovered from the recession and is daring to meet the challenge in the coming years, with a minimum of two models per year to take the net increase to 10% in 2012. However, the net sales of motorbikes in India are 58,35,145 units of which Yamaha shared 3.5% in 2008. With a target of domestic sales of 2.2 lakhs- 2.5 lakhs this year, the company is pinning on the hope of raising it to 3 lakh by 2010. For this the company is to invest Rs800 crore with a plant in Faridabad with a capacity of 9 lakh units. Already Rs480 crores have been invested and in the next three years Rs200 crore would be allocated for developing new ranges.
The high end bike sector has the giants like Suzuki and Honda who normally sell bikes @Rs10 lakhs. In addition, Harley Davidson is too eyeing on the Indian market. Yamaha’s sales story in India is – 1670 cc MTO1 and 998 cc bike YZF-R1 @RS12 lakh+. The next venture will be selling 25 units of 1670cc new VMAX in another year of which 8 bookings are already on records. There are limited editions of FZ bikes in three variants @Rs66,500 to Rs73500. The sole objective of the company is to secure 10% of the Indian bike market by 2012 in addition to 30% of the deluxe market and premium sector. The company has sensed the premium area in the Indian market.