Yamaha reorients India strategy
The Japanese major said it would be focussing on niche products for future growth, even as its mulls setting up a new plant in India.india Updated: May 17, 2006 12:18 IST
In a clear shift from being a competitor in the mass market motorcycle segment, Japanese two-wheeler major Yamaha Motors on Wednesday said it would be focussing on niche products for future growth, even as its mulls setting up a new plant in south India by 2010.
"Since February this year, we have been going on a path which invloves a complete change in business and marketing strategies from what we have been doing earlier," Yamaha Motors India CEO and Managing Director Tomotaka Ishikawa told reporters in New Delhi.
He said, henceforth, the company would be following a focussed effort towards brand building and enhancing its equity and new products would follow a youth centric approach.
Ishikawa said the company, which has a 5 per cent market share in India would like to see it in double figures in two years time.
"Our target is to sell about one million bikes by 2010 for which we would need a new production unit," he added.
He said considering the distribution network the company would prefer to have its plant somewhere in south India.
Commenting on the company's move away from the entry level 100 cc segment, he said, "we see our future in the upper categories of 125 cc and above, which has been growing very fast in India."
Asked if that would mean phasing out of its current ectry-level model 'Crux R', he said the company would continue to supply as long as there was demand from dealers.
"But a new model in that category is questionable," he added.