Two-wheeler manufacturer Yamaha Motor India launched a 125cc motorcycle Saluto marking its entry into the large volume segment, which will underpin its growth along with entry into rural markets.

The launch indicates the start of production at its new factory near Chennai which will be formally inaugurated next month, according to Asano Masaki, CEO & Managing Director, Yamaha Motor India.

Addressing media persons at the national launch here, Masaki said the company will sustain its growth in 2015 backed by the launch of the scooters last year and the Saluto, a motorcycle for the family. The Saluto is aggressively priced at ₹ 52,000 ex showroom Delhi and will contribute to volumes.

The company is also expanding its network into small towns and cities, he said

Yamaha Motor has established adequate production capacity to accommodate the anticipated growth. Apart from the one-million-units-a-year factory at Surajpur, UP, the company has set up a second unit near Chennai with a total annual capacity of 1.8 million two wheelers.

The new factory at Vallam Vadagal, an industrial hub to the west of Chennai will make about about 400,000 two-wheelers in the first year and output will be increased in stages. This unit also makes Yamaha scooters – the Alpha and the Ray.

In 2014, the industry grew 11 per cent with total two wheeler sales of about 16 million units. Yamaha India grew at twice that rate to 4.47 lakh units with scooters accounting for about 45 per cent and motorcycles 55 per cent of the sales.

Roy Kurian, Vice President, Sales and Marketing, Yamaha Motor India Sales, said the company has adopted a "top down" approach in its sequence of launches. It started out with high end motorcycles and superbikes in line with its reputation in performance segments and is now expanding its portfolio into the mass market segment. The Saluto is positioned in the executive segment where the total market size is more than two million units a year.

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