Yamaha plans to develop Rs 30,000 two wheeler for India and exports
With the two wheeler market set to grow 9% in FY14, Japan’s Yamaha Motors is slated to be working on a project to develop a small and cheapest motorcycle. This small bike will sell for around $500 (INR 30,000) about $200 less than the cheapest motorcycle in markets today. Though there are no confirmations on when the project will be completed, sale in India and export to countries including China are on the cards.
Yamaha has confirmed a new $500 motorcycle in the making but failed to reveal any time frame for launch. The company has just launched upgraded variants under the FZ series- FZ and FZ-S Version 2.0. These revelations come at a time when competition in the two wheeler sector is at its peak but also at a time when sales are falling sharply.
Slower than expected economic growth, escalating interest rates and ever increasing prices of fuel have all had an adverse impact on motorcycle sales in India which has seen a 6.96% drop last month as compared to sales in the same month last year.
Yamaha budget bike is not expected to be ready for the next couple of years but sales in India are expected as the company positions the Indian market in high regard. Development of products in India to be close to the market and receive quicker and better response is what Yamaha expects as India is the second largest two wheeler market in the world after China. A smaller and lower cost bike will allow the company to not only expand reach but also to improve their market share in the country.
via Economic Times