The Hindu Business Line : Yamaha Motor hopes to break even by next year

YAMAHA Motor India today said that it has plans to invest Rs 400 crore over the next three years towards developing new products, sprucing up manufacturing and creating awareness for its brand.

According to Mr Hiroyuki Yanagi, the new CEO and Managing Director of Yamaha Motor India, the company is targeting a market share of 20 per cent in India by 2007, and expects to break even by next year.

Helped by sales of the Fazer bike, which the company launched on Monday, Mr A.V. Srinivasan, Executive Vice-President of Yamaha Motor India, said that the company expected to sell well over three lakh bikes in 2004 and 3.7 lakh in 2005, when it expects to break even. He said the firm had an accumulated loss of over Rs 150 crore.

The company also intends to spend about Rs 50 crore towards a voluntary retirement scheme later this year to reduce workforce from 2,400 to 2,000.

Yamaha has also decided to launch one new product every six months in the Indian market. "We have undertaken a feasibility study to launch scooters in the Indian market and would take a decision on our scooter strategy once the findings of the study are out by December this year," Mr Yanagi said.

The company would also streamline its current product portfolio and plans to phase out the RX 135 and Rajdoot.

In value terms, Yamaha is targeting a turnover of about Rs 1,000 crore this year and Rs 1,250 crore in the next year.

The company is aiming to sell around 40,000 units per annum of the 125 cc bike Fazer, which it believes will bring in the volumes for the two-wheeler maker. The Fazer has been priced at Rs 43,990 (ex-showroom New Delhi) and comes equipped with air-cooled SOHC 2-valve engine.

More Stories on : Outlook | Two/Three Wheelers

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page