Reference Auto

Price-sensitive India is going to become the base for Yamaha’s low cost bikes, and among them would be the world’s cheapest bike (at $500) with the company planning to set up its fifth global research and development centre in the country and this move would surely put Yamaha in the big league of bike makers in India soon.

The company’s new arm Yamaha Motor Research and Development India Private Limited or YMRI, set up in Surajpur in Uttar Pradesh a few months ago, has already started work on the low-cost bike.

The company remained tightlipped as to when the motorcycle would be rolled out (or even unveiled), and only revealed that the bike would a 100 cc one or could be with a tad higher engine capacity.

Yamaha is banking on price-sensitive India to rev up sales figures in the beginning. Therefore, initially Yamaha would sell the bike in India, which owing to its price, could see record sales, may be in the short to medium term.

Later on, the company has some astute plans of selling in Latin American and African countries, as these developing nations would surely lap up the world’s cheapest bike.

Initially, the Japanese motorcycle giant would develop the world’s cheapest bike (concept) and later come up with a model designed for India. After this, a global variant would be developed.

India Yamaha Motor managing director and CEO Hiroyuki Suzuki said, “We are focusing on sporty, stylish and performance bikes in the country so far. But now, we are looking to ramp up our presence among people, who use the public transport. Developing the product in India will not only give us cost advantage but we can also price it very competitively.”

He added that the company is eyeing 7.1 lakh motorcycle and scooter sales this year, of which 2.1 lakh would be exported. This may not be a big problem, if the bike (which would be the cheapest ever) comes with adequate features and amazing looks.

Against this ambitious target, Yamaha had sold 4.9 lakh two-wheelers in 2012.

Actually, with this announcement, Yamaha could create quite a flutter in the Indian motorcycle market and may pave the way for other companies to join it in rolling out cheap bikes (in the $500 range).

If many bike makers join the bandwagon, it would not only mean cheaper bikes for the Indian consumer but also a wide variety of choice.

Yes, Yamaha is setting a trend in India by planning a $500 bike and unless other companies make a fast move, Yamaha would be unstoppable and surely witness an unprecedented rise in sales and earnings, becoming a part of the big league of bike makers in India.