CHENNAI: The two-wheeler market was bogged down by a negative growth in October except for India Yamaha Motor Pvt Ltd (IYML) which notched a 44 per cent growth over the corresponding month in 2007.
“Yamaha sold 19,000 bikes in October with 8,000 units contributed by our all new FZ 16 (153 cc) air cool bike. Till November 21, we had a paid up booking of 22,000 bikes,” said Sanjay Tripathi, Division Head-Product Planning and Marketing.
Earlier in 2008, IYML had announced an investment of Rs 800 crore on its Indian operations over the next three years with plans to launch three new models in the current year- the Gladiator Type SS and RS 125 cc models, the YZF- R15 liquid cool 150 cc motorcycle and the FZ version. Since its launch in June, the R15 bike has already sold 13,000 units till date, despite a steep selling price of over Rs 1 lakh.
Queried on how Yamaha bikes had kept up their growth momentum despite the scarcity of auto loans and unwillingness of banks to extend them to prospective buyers leading to a downslide in the industry, Tripathi told to this website’s newspaper that Yamaha’s strength was its own financial company, Bussan Finance.
Tripathi dismissed any plans by Yamaha to undertake production cuts or lay off employees as a consequence of the economic slowdown and pointed out that the company would be launching a couple of new products in the new year. This would enable the company to garner a market share of 10 per cent by 2010-11 compared to the existing four per cent share.
IYML ranks fifth in the twowheeler market with Hero Honda, Bajaj and TVS the frontrunners. Last year, Yamaha sold seven million units in the country but since its products have not proved to be very competitive in India, it has embarked on a marketing blitzkrieg with a thrust on the three Ss –sales, service and spare parts.
Moreover, Yamaha is focusing on a new DNA of design, technology, innovation, performance and style. The company plans to replicate the direct shop-selling concept in their 330 dealerships.
Yamaha has four company owned outlets and plans to open the fifth one in Kolkata by the end of the month.
“In Chennai, we have a very strong dealer network, so we have not incorporated the company showroom concept here,” explained Tripathi.
But he clarified that Yamaha would only ramp up its capacity in the country in a systematic manner, refusing to divulge details. At present, the company has an installed capacity of five lakh units per annum at its two facilities at Faridabad in Haryana and Surajpur in Uttar Pradesh and produces motorcycles both for domestic and export requirements.
IYML entered India in 1985.
Subsequently, it entered into a 50:50 joint venture with the Escorts Group but in August 2001, Yamaha acquired its remaining stake, bringing the Indian operations under its complete control as a 100 per cent subsidiary of Yamaha Motor Co Ltd, Japan.
