Known for its premium and sporty bikes in the Indian market, Japanese two-wheeler major India Yamaha Motor (IYM) now wants a slice of the entry-level segment pie as well. After the launch of its YBR 110 (106 cc bike), the company has planned a couple of launches in this segment for the Indian market. ?This is a strategy specific to the India market. Globally, the focus is on premium and deluxe segments. Entry-level bikes dominate over two-thirds of the Indian market. So, this market is also important for our company,? Pankaj Dubey, national business head, IYM said.
The company is also looking at making India an export hub for its premium bikes.
The entry-level segment in India is largely dominated by Hero Honda Motors, Bajaj Auto and TVS Motors.
Dubey agrees this is a tough and a highly competitive market dominated by other players. Yamaha wants to gradually penetrate this market and slowly build it up, he said. ?The current market share of Yamaha in this category is very marginal at 1.5%. Our intention is to bring this up to 10% in the next two to three years. We are not expecting an immediate improvement in market share. But as the market improves, our volumes will also grow,? he said.
The total two-wheeler market currently stands at 9 million units annually. Yamaha?s existing offerings in this segment include the G5 (106cc), Alba (106cc) and Crux (106cc). However, these have been doing small volumes at around 5,000 units to 6,000 units annually. IYM was among the first companies to launch the ZF R1 and the torque sports MTO1 in the Indian market. Both bikes are priced at Rs 10.5 lakh (ex-showroom). In the 2009 fiscal, India Yamaha sold 85,000 units of FZ16 and FZ-S, contributing 40% of total sales volume.
The company is currently working on a couple of bikes in the segment ranging between 100 cc and 125 cc. The bikes are likely to be launched by the second half of this calendar year. They were already displayed at the Auto Expo of 2010, he pointed out, adding that there were no plans to bring back the RX100, which was phased out in the late 1990s.
To increase penetration in entry level this market, IYM has begun work on strengthening its presence in C and D class towns. At present, there are 430 dealers and 1,100 retail outlets, which will be stepped up to some 2,000 outlets in the next three years. ?The idea is to be closer to the customer. Moreover, the smaller towns are the customers for this segment, Dubey said. In April 2010, company sales grew by 42% with the company selling 24,960 units as against 17,576 units sold in April last year. In domestic markets, the company sold 16,861 units in April 2010 as compared to 15,120 units in the same month last year. Exports stood at 8,099 units in April 2010 while 2,456 units were exported in April 2009.