New Delhi, Aug 22: Escorts Yamaha Motor Ltd (EYML) has downed shutters of its moped manufacturing facility and shelved its two existing brands due to lack of adequate demand and decided to concentrate fully on its motorcycle production.EYML was producing two moped models and marketing them with brand names `Toro Jazz' and `Toro Rosa.' The company decided recently to discontinue the production as earning was low from moped business, company sources said.
Against a 5 per cent growth recorded by the moped segment in 1998-99, sales of EYML mopeds declined by 17.7 per cent. Its market share also declined from 1.9 per cent in 1997-98 to 1.5 per cent in 1998-99.
The company has, however, made arrangements to supply spare parts and providing service to its customers for the next seven years, sources said.
EYML could not make its presence felt in the competitive moped sector despite having technical collaboration with Italian company Motori Mineralli, they said. The moped models were fitted with two-stroke50 cc engines and were capable of delivering 2.67 brake horse power (bhp) and a fuel economy of 83 kms per litre.
EYML has tied up with Yamaha Ltd of Japan to produce two-stroke and four-stroke motorcycles and selling in the brand name of Escorts Yamaha.As part of its renewed thrust on motorcycle business, EYML is now contemplating launch of new four-stroke motorcycle models shortly, company sources said. It has targeted to launch one motorcycle model every year in its bid to remain in the competition and corner a larger marketshare of the motorcycle market.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.