The Hindu Business Line : Yamaha gearing up product line; scooter launch on cards

YAMAHA Motor India is gearing up to put back the zing in its Indian operations. Work is underway on new engines and technologies for future motorcycles that will make Yamaha a key player in the premium segment.

The company is also studying the Indian market for scooters for the possible launch of a new product line, Mr H. Yanagi, CEO and Managing Director, Yamaha Motor said.

Mr Yanagi, who was in the city for the launch of the company's new 110-cc bike, G5, said the company will focus on launching bikes in the premium segment in the next few years since the market is now moving towards purchases in this segment.

"We are working on product development of various models at the moment and the focus will be on sportiness and innovation in bikes. In the next two years, we will invest Rs 200 crore on product development, capacity expansion and new marketing initiatives to create brand pull," he said.

The company's capacity will go up from 3.5 lakh units to five lakh units in the next couple of years.

Meanwhile, the company is embarking on a plan to restructure its sales and service network, Mr Atul Gupta, Chief General Manager, Sales and Dealer Development, said adding that at least 100 of the existing 400 dealers would have to upgrade the hardware and software skills available in their dealerships.

The company is also on the verge of launching `Yamaha Point' service centres that will come up across major metros and State capitals beginning with Mumbai, Mr Gupta said.

The 110-cc G5 will be formally launched in the second week of July with an ex-showroom price tag of Rs 40,900 plus. This,along with Fazer DX and LX, will be a precursor to a host of new models which the company says will transform the market from being utility-driven to pleasure driven.

"We expect to sell 10,000 units a month of G5 and 5,000 a month of Fazer," Mr Yanagi said.

Yamaha is also considering relaunching its premium cruiser, Enticer, but not before the company reworks the category and the consumer needs in that market, he added.

Yamaha's exports, is on the rise with the numbers going up from 50,000 units last year to an expected 60,000 units in the current year. The company exports bikes largely to South America and the South-East Asian countries.

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