MUMBAI: Japanese motorcycle major, Yamaha Motor Co, has drawn up a Rs 800 crore capex plan and is eyeing a 10 per cent market share in the fast growing high-end motorcycle market in India, a top company official said.
"We will invest Rs 800 crore in India and double capacity to 8,00,000 motorcycles and strengthen our dealers network," Yamaha Motor India (YMI) CEO and Managing Director, Tsutomu Mabuchi, told reporters here today.
The company plans to introduce more high-end motorcycles in India to capitalise on the country's rapidly growing market. It is eyeing a 10 per cent market share by FY 10 from the present 2.6 per cent, Mabuchi said while inaugurating its first new-age company-owned lifestyle factory shop in Mumbai.
India will be the number one thrust market for Yamaha Motor Co which is aiming for a turnaround following its success in Thailand, Vietnam and Indonesia, YMI's National Business Head, Pankaj Dubey, said.
The company is setting up its third unit at Surajpur in Uttar Pradesh, which will be ready by next year. The company plans to introduce new models from this unit.
YMI operates from its state-of-the-art manufacturing units at Surajpur in Uttar Pradesh and Faridabad in Haryana and produces motorcycles both for domestic and export markets.
Yamaha's product portfolio includes MT01 (1,670cc), YZF-R1 (998 cc), YZF-R15 (150cc), Gladiator Type SS & RS (125cc), Gladiator Graffiti (125 cc), G5 (106 cc), Alba (106 cc) and Crux (106 cc).
Yamaha is primarily focusing on volumes, which primarily consists of 100-125 cc bikes, and it may launch some more bikes in the category next year. After launching YZF-R15, the company now plans to launch its new bike FZ shortly.
"Our premium bikes have given a push to our sales but we would also be focusing more on the volume segment," he added.
Yamaha is now looking at a serious image makeover in India. Targeting a sale of more than half-a-million bikes in 2009, Yamaha is contemplating revamping network in the country, and adding 73 new dealers in the current year.
"We are working to improve our fundamentals which include setting up strong sales, services, dealership and spare parts network. We have 307 dealers and will add another 73 dealers by end-this year and 450 dealers by FY 10," Mabuchi said.
YMI has opened company-owned showrooms at Pune, Delhi, Mumbai and will shortly open one at Kolkata that would sell the R15 and other premium bikes the firm will launch in the next one year, Dubey said.
The bulk of the Indian motorcycle market consists of scooter-type models with 125cc engines. But demand for high-end motorcycles which account for 20 per cent of the market is growing as income levels rise.
Yamaha is also looking at expanding its new merchandising concept in a phased manner thoughout India.
Yamaha is refining the motorcyling culture in India by bringing in technologically advanced and visually appealing machines, Mabuchi added.
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