Yamaha is deploying ₹100 crore as part of its R&D budget for adhering to BS-VI norms that come into force in India by 2020 for two-wheelers.

A part of this investment, which will be spent over the next three years, will also be for product development.

Cost challenge

“With BS-VI norm coming in 2020, we need to change the entire system for the vehicles. We are working on methodologies to ensure that the platform or materials change is done in a cost-competitive manner. The cost part, not technology, is the biggest challenge in this transition,” Yasuo Ishihara, Managing Director, Yamaha Motor Research Development India, told BusinessLine . Its R&D operations, which are housed at Surajpur and Chennai (at Oragadam near the factory premises), employ about 110 engineers. The company, Ishihara said, is taking steps to double the headcount at the earliest. Its R&D operations have been working on facelift for existing models, new platforms and BS-VI migration.

Through its India R&D centres, Yamaha plans to make the ‘Make in India’ programme global and develop and manufacture global models from India.

With the launch of its Chennai R&D operations in 2016, the company has been focussing on ‘value development’ to create the balance between the function and cost.

Supplier base expansion

Ishihara said the company was seeing the scope to expand its supplier base in India as also to partner with some innovative technology companies to improve its cost-competitiveness in the country.

With India entering a period of increased motorisation,Yamaha has introduced new scooters every year since 2012. These models have been well received, particularly by young customers.

“Yamaha is also working to increase sales by expanding its line-up of lower-priced, more affordable models,” said a latest document of Yamaha global.

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