Two-wheeler major India Yamaha Motor is targeting a growth in sales volumes of over 18% in 2024 on the back of premium product offerings as well as enhanced reach.
Speaking to FE, Eishin Chihana, chairman, Yamaha Motor India, said the company aims to achieve volumes of about 1 million units in CY24.
As per the plan, of the total targeted volume, 750,000 units will be sold in the domestic business, whereas 250,000 units will be exports.
In 2023, the company sold 640,000 units in the domestic market, while the exports stood at 212,000.
“Urbanisation of India has created a lot of demand for premium products, right from apparel to motorcycles,” Chihana said, adding that the new-age Indian customer seeks more than just utility from their motorcycle.
“Yamaha believes the future lies in the premium space and the Indian two-wheeler market is steadily moving in that direction,” he said.
According to Chihana, Yamaha’s product offerings, which include 125 cc scooters and 150 cc motorcycles, are “perfectly placed” to attract the company’s target consumers aged between 18 and 25 years from urban and semi-urban India. “We have an opportunity to retain them as and when they decide to upgrade. We have two 300 cc models for them to grow into, and more of such high-performance models will follow,” he said.
The two-wheeler maker has a network of 700 dealerships across the country. It plans to enhance its reach by opening 555 premium ‘Blue Square’ showooms by 2025. At present, there are 350 such units across India.
Chihana expects the two-wheeler industry to overtake its peak of 21 million units achieved in CY18 by around CY26 or CY27.
“In this growing market, we presume internal combustion engine (ICE) powered two-wheelers will continue to be mainstream for the next five years. Although electric vehicles (EVs) will also witness a continuous rise in volumes, by 2030, they may be between 20% and 30% of the total two-wheeler market,” he said.
“Our strategy will continue to focus on growing our portfolio of premium ICE scooters and motorcycles, while we prepare for the EV of the future.”
Chihana added that the company’s engineers are actively working with their counterparts in Japan to develop an all-new EV for the Indian market. “This is being done so that Yamaha can also compete in the 20-30% market share that EV sales will command within the overall two-wheeler segment,” he added.
