Yamaha to make India export hub

Yamaha Motor Co. Ltd intends to enhance and expand capacity and export motorcycles made in India to Africa and South America. In a bid to turn its local business profitable after more than 25 years, the company has great plans for the future.

Commenting on the developments, Hiroyuki Suzuki, the new managing director and chief executive of Yamaha India said, “We are in a very severe condition.” He added, “But we aim to break even by 2013 as we are increasing our production capacity.” The company also manufactures 600,000 Yamaha bikes a year at its Greater Noida plant. He said, “We plan to raise the capacity of this plant to one million and, by 2013, in the domestic market we aim to sell 800,000 units and 200,000 to be exported.”

Yamaha India had partnered tractor maker Escorts Ltd. In the last 15 years, it sold 2.5 million Yamaha bikes in the country, cornering 7.2% of market share. In 2000, Yamaha bikes released low end bike models and the market share fell to 3.6% by 2005-06, and to 2.35% by 2010-11. In the 11 months to February, however, sales rose 22.55% to 251,762 units on the back of India’s economic growth. The company has sold over five million motorcycles in India to date, according to a spokesperson.

Hiroyuki Suzuki added that he plans to sort these issues over the next two years. He also said that Yamaha is doing a feasibility study to make India an export base for Africa and South America. Besides, the company will also strengthen its research and development division in India with the help of Yamaha Japan to support the various export plans.