Yamaha Motors has announced that they are developing a new motorcycle which when launched, will become the cheapest motorcycle in the world. Yamaha is developing this new motorcycle for motorcycle buyers in Africa and India, where demand for low-cost motorized two wheeler vehicles is increasing exponentially.
Currently, in the Indian auto industry, the cheapest motorcycle is priced at Rs 36,300 (Hero MotoCorp CD Dawn). The new Yamaha motorcycle, which is yet to be named, will be launched with a price tag of less than $500, and going by current currency conversion rates, it will be priced for less than Rs 28,000. Yamaha will also make India as their base to manufacture and export this new $500 motorcycle.
Mr Hiroyuki Suzuki, CEO & MD, Yamaha Motors India, said, “Our product benchmark right now (on cost) is the YBR 110 and Crux, but we would like to develop a bike in the low-cost segment for markets like Africa. The target is to make a bike that will cost $500 (about Rs. 27,500). I think such a bike will have a lot of demand in Africa as well as in India.”
Earlier this month, Honda Motors launched their cheapest motorcycle ever in India – Dream Yuga for a price of Rs 44,642 and also announced plans of launching even cheaper motorcycles in future. As of now, Yamaha’s cheapest motorcycle for the Indian market is Crux 110cc which is priced at Rs 38,365. Yamaha also exports this motorcycle to China.
Motorcycle industry in India getting competitive in India. Hero MotoCorp, which has held the tag of largest motorcycle manufacturer for quite some time, now faces some stiff competition from Bajaj Auto, TVS, Suzuki, Honda and Yamaha. Though Hero MotoCorp numbers are far better than competition, riding on the success of Splendor and Passion, but slowly and steadily, competitors are catching up.
Bajaj is scheduled to launch the new Pulsar 200 NS this month, which is expected to create a storm in the motorcycle industry due to its aggressive pricing of less than Rs 100,000. Bajaj Auto is already the leader as far as performance bikes are concerned. But in order to generate numbers in India, manufacturers need to compete in the 100 cc to 125 cc segment, which is where maximum number of motorcycles are sold.