Tuesday 28 May 2013

Yamaha keen on tapping rural markets in India for larger sales

Japanese automaker Yamaha Motor has already announced that India will be its biggest market by 2016. This, after Indian two-wheeler market beat China in 2012 with an estimated demand for 14 million units. With a range of models designed and developed specifically for India and emerging markets, Yamaha is now concentrating on tapping rural markets for larger sales. Masaki Asano, MD Yamaha Motor India Sales, in a chat with Sharan Poovanna shared some of their plans for the Indian market.

How does Yamaha plan to take their plans in India forward?
We have devised an Area Market Approach where there will be specific focus on different geographies in India. The two wheeler industry in India registered a de-growth of -0.2% Jan-April 2013) while Yamaha registered a 22% growth rate. We have a market share of around 3% in motor cycles and 16% in scooters. With the new plant in Chennai to be completed by mid-2014,we would like to take our share up to 10% in the next 5-10 years for motorcycles. Scooter segments are doing really well and we are targeting to take this to rural areas for higher sales volumes. We launched Ray in     September 2012 and already sold 70,000 units and have 16% market share.

Will the company shift its focus from motorbikes to scooters considering how well the segment has done for the company?
We have a larger presence in motorbikes and do not see any shift as of now. Scooters have been doing well for us and will help us tap rural markets. Currently our production is about 25,000-27,000 motorbikes and around 10,000 scooters per month.

Will the new R&D centre in India cater to other markets as well?
The first priority of the new centre will be to cater to Indian markets. Currently we have around a 100 people in the R&D centre here. We have also established Yamaha Motor India Sales Team to carry forward our plans.

How is the company fairing on exports?
The products manufactured at our Surajpur plant (Noida) and the new plant at Chennai will also take our exports to over 1 million next year and subsequently to 2 million by 2016. We currently export to Sri Lanka, Nepal, Argentina and other countries in South America.

When will Yamaha launch their Super Bikes in India?
We have no plans for that as of now. All our super bikes are being produced in Japan currently. In India there is a presence of our bigger bikes but they have to be imported from Japan through our dealers. Our focus remains clear to increase our volumes with more sales in both urban and rural population.

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