India Yamaha Motor is all set to roll out a new commuter motorcycle and a scooter variant tomorrow in New Delhi.
13 Apr 2016 | 4888 Views | By Amit Panday
India Yamaha Motor is set to take the covers off an all- new commuter motorcycle and a scooter variant tomorrow.
Autocar Professionallearns that while the new scooter could be the Ray-ZR, a variant of the existing 113cc Ray scooter unveiled at the 2016 Auto Expo in February, Yamaha ...
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India Yamaha Motor is set to take the covers off an all- new commuter motorcycle and a scooter variant tomorrow.
Autocar Professional learns that while the new scooter could be the Ray-ZR, a variant of the existing 113cc Ray scooter unveiled at the 2016 Auto Expo in February, Yamaha has also readied an all-new commuter motorcycle with an engine displacement likely in the range of 110cc-125cc. At least four different industry sources have confirmed the same.
India Yamaha is understood to have withdrawn its models from the mass commuter category of 75cc - 110cc motorcycles around end-2015. As such, it is absent in this category which accounts for a hefty 40.48 percent of the overall two-wheeler market (FY2015-16) since December 2015.
Further, within India’s overall motorcycle market, which stood at 1,07,00,466 units (including step-throughs and primarily TVS mopeds) during FY2015-16, the 75cc-110cc commuter motorcycle segment holds a dominating share of 62.25 percent. The total size of the most affordable mass commuter motorcycle category stood at 66,61,359 units during the last fiscal. This clearly hints at a vacuum that Yamaha has to fill soon in order to garner volumes in the motorcycle market going forward.
Focus on mass market, volume-driving models
The new model is also in line with Yamaha’s new Medium-Term Plan 2016-2018 for global markets released on December 15, 2015 by company headquarters in Japan. The Medium-Term Plan for the Indian market clearly highlights the focus on targeting the mass market and achieving stable profits through volume scale.
“Targeting mass market via regions, launching emerging market strategy models, improving sales network quantity and quality and strengthening customer contact points,” quotes the report in its motorcycle strategy for India section.
Talking to Autocar Professional on condition of anonymity, a source in the know of the development at India Yamaha said, “The company has readied a 110cc commuter motorcycle, with which it is looking at gaining some foothold in the most affordable category. The company has never been successful in the 100cc-110cc segment thus far due to the stiff market competition and price pressures. However, this is going to change as the global management now wants to ensure that the brand gains some identity in this segment. This is why there is a lot riding on the upcoming commuter model.”
Saluto shines
Interestingly, the company had launched new models under an all-new sub-brand named Saluto last year, positioning 125cc executive commuter motorcycle variants under its umbrella. Market statistics highlight that the Saluto series has seen success to some extent and has delivered Yamaha much-needed traction in the 125cc category, which saw an intense struggle between Honda (CB Shine variants) and Hero MotoCorp (Glamour variants) for the top spot in FY2015-16.
SIAM’s industry data conveys that India Yamaha Motor registered average monthly sales of close to 5,000 units through its Saluto models available as two variants (with drum and disc brake features).
Sources point out at a possibility of Yamaha launching a 110cc motorcycle model under its Saluto brand to capitalise on its newfound customer pull in the market. “They may name the new model as Saluto RX,” revealed a source.
Clearly, it is understood that by commercially rolling out new models – 113cc Ray-ZR and possibly a 110cc commuter motorcycle – at the affordable end of the two-wheeler market, Yamaha aims to generate healthy sales momentum this year.
The well-thought product and sales push strategy from the company also comes on the back of reports from the India Meteorological Department (IMD), which has forecast above-normal rainfall this year. This would mean a potential surge in rural demand (on the back of increased farm output) which will give a fillip to two-wheeler sales in the coming months.
India Yamaha Motor reported total sales of 651,408 units for FY2015-16, which marks a healthy growth of 15.24 percent year on year.