Japanese two-wheeler maker Yamaha plans to get into the mass bike segment ? which is below 150 cc ? in a big way in 2014, a move which could pose a challenge to the market leaders Hero MotoCorp and Honda Motorcycle & Scooter India.
At present, the company is studying the mass bike market in 100 cc and 125cc, after which it would develop products in this range to target the segment.
?We are looking at consolidating the 150 cc segment, including FZ and SZ series, and scooter segment. These initiatives will take us to the next level. After this, we would enter mass market in a big way. We target sales of 10-lakh-plus capacity in this segment by 2014 from current 6.5 lakh,? India Yamaha Motor national business head Roy Kurian said.
He said that Yamaha follows a top-down approach in launching products from its portfolio. After gaining a strong foothold the 150 cc market, it would spread in other areas.
Yamaha plans to invest R800 crore on capacity expansion and new product development in the next two years, as it looks to sell 10 lakh two-wheelers by 2014.
The company, which is present in India through its wholly-owned subsidiary India Yamaha Motor, has now two plants with a total capacity to manufacture around 650,000 two wheelers annually.
?We plan to invest R800 crore in 2012-13 on production enhancement, network expansion and new product development,? Kurian said. The company is also looking at enhancing its presence in the country by 2014.
?We are looking at 2,000 dealers for 1 million sales target by 2014,? Kurian said, adding that the 2,000 figure would include sub-dealers, branches as well as Yamaha Bike Corners.
The company has also started scouting for land in Tamil Nadu and Karnataka for setting up its third plant in the country.