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In a first India made bikes to hit Japan roads; Yamaha to export bikes from Surajpur plant.
Ketan Thakkar, ET Bureau Jul 26, 2012, 10.16AM IST
MUMBAI: Twenty-seven years after setting up a manufacturing base in India, Yamaha Motor Company will export sports bikes to Japan from India, in what is a first in the history of Indian two-wheeler industry.
ET learns India Yamaha Motor, the subsidiary of the Japanese two-wheeler company, will be exporting its first shipment of 300 deluxe motorcycles R15, a 150cc sports bike manufactured at its plant in Surajpur. The idea is to test the product in Japan; if the response is good, the company may even begin exports of another motorcycle, FZ, to its home market.
Confirming the development, Hiroyaki Suzuki MD, India Yamaha Motor, told ET: "The motorcycles manufactured in India meet the advanced specification of developed markets and they are produced at a lower cost. We are sending R15 to Japan to test market them in the Japanese market and if the response is good, we may explore more products for export to Japan and other advanced markets."
""Japan is a market for big bikes and racing motorcycles and within that, the 150 cc segment is emerging. Our R15 fits the image; not only is it easy to race and manoeuvre, but it could also be an ideal choice for entry-level racing,"" added Suzuki.
About 4,00,000 units of two-wheelers are sold in Japan annually, with the market being dominated by 50 cc scooters and the balance making up for big bikes. R15 commands a price tag of 1.15 lakh on Indian roads, but in Japan, it will sell at ¥3.42 lakh, or 2.45 lakh.
"If the response is good, our next target would be Europe," says Suzuki. The company has already started exploring markets of Turkey, Spain, and Portugal to export R15 and FZ in 2013.
Two-wheeler exports from India are nothing new, Bajaj Auto and TVS Motor ships products to Africa, Latin America and the Asean countries. However, Yamaha is one of the select few to reach out to developed markets from India, the others being Eicher Motors, Royal Enfield.
In 2011-12, two-wheeler exports from the country grew 27.13% at 1.94 million units compared with 1.53 million units in 2010-11. Bajaj Auto was the largest exporter with 1.26 million units, followed by TVS Motor (2.6 lakh units). India Yamaha Motors was the fourth largest with shipment of 1,29,394 units, a growth of 45%.
Venki Padmanabhan, CEO, Royal Enfield feels having a product designed for the developed market specifications may very well put the company in a strong position in the Indian market. But these are cult bikes, that are owned by bike connoisseurs and few in numbers.
"The consumer activism is rising at such a level that no longer can one afford to have a differentiated product for overseas markets and India. The consumers today are knowledgeable, they travel a lot, and they have a reference to the products in developed markets and they want the same here. The Classic was developed keeping in mind the matured markets of Europe and US and look at the response we have got for Classic in India," said Padmanabhan.
Japanese two wheeler majors such as Honda, Yamaha, Kawasaki & Suzuki along with their joint venture partners have played a significant role in transforming the Indian two wheeler market once the sector was opened up by government in the 80s.
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The Indian market which was heavily driven by scooters saw the emergence of trendy motorcycles, which became the ultimate transportation for middle class in 90s. It caught the fancy of the youth and became a preferred choice due to the power, fuel efficiency and safety it offered because of larger wheelbase. Today India is predominantly a motorcycle market constituting 80% of the overall two wheeler market, which stood at 13.43 million in FY-12
V G Ramakrishnan, senior director at Frost & Sullivan says exports to the developed markets has happened in the car industry before, it may not have gone back the MNC's origin but the car exports to developed market has given India the quality stamp. "So from quality standpoint Yamaha has no worry, plus exports helps the company to battle volatile currency (appreciating yen and depreciation rupee) and build volumes which improves the competitiveness back in India," said Ramakrishnan.
The yen is one of the currencies to appreciate against the US dollar. The Japanese currency has appreciated 10% over the last two years against US dollar, while currencies including the Indian rupee have depreciated. The current currency equation will also stand in good stead for quality Indian products in Japan.
Yamaha in 1985 joined hands with Escorts to set up a joint venture to manufacture motorcycles in India. Around the same time, the Munjals of Hero group signed up a joined venture with Honda and TVS and Suzuki teamed up. Over time, the three joint ventures were disbanded and the Japanese companies and their Indian partners decided to go alone in India.
In a first India made bikes to hit Japan roads; Yamaha to export bikes from Surajpur plant - Economic Times
Ketan Thakkar, ET Bureau Jul 26, 2012, 10.16AM IST
MUMBAI: Twenty-seven years after setting up a manufacturing base in India, Yamaha Motor Company will export sports bikes to Japan from India, in what is a first in the history of Indian two-wheeler industry.
ET learns India Yamaha Motor, the subsidiary of the Japanese two-wheeler company, will be exporting its first shipment of 300 deluxe motorcycles R15, a 150cc sports bike manufactured at its plant in Surajpur. The idea is to test the product in Japan; if the response is good, the company may even begin exports of another motorcycle, FZ, to its home market.
Confirming the development, Hiroyaki Suzuki MD, India Yamaha Motor, told ET: "The motorcycles manufactured in India meet the advanced specification of developed markets and they are produced at a lower cost. We are sending R15 to Japan to test market them in the Japanese market and if the response is good, we may explore more products for export to Japan and other advanced markets."
""Japan is a market for big bikes and racing motorcycles and within that, the 150 cc segment is emerging. Our R15 fits the image; not only is it easy to race and manoeuvre, but it could also be an ideal choice for entry-level racing,"" added Suzuki.
About 4,00,000 units of two-wheelers are sold in Japan annually, with the market being dominated by 50 cc scooters and the balance making up for big bikes. R15 commands a price tag of 1.15 lakh on Indian roads, but in Japan, it will sell at ¥3.42 lakh, or 2.45 lakh.
"If the response is good, our next target would be Europe," says Suzuki. The company has already started exploring markets of Turkey, Spain, and Portugal to export R15 and FZ in 2013.
Two-wheeler exports from India are nothing new, Bajaj Auto and TVS Motor ships products to Africa, Latin America and the Asean countries. However, Yamaha is one of the select few to reach out to developed markets from India, the others being Eicher Motors, Royal Enfield.
In 2011-12, two-wheeler exports from the country grew 27.13% at 1.94 million units compared with 1.53 million units in 2010-11. Bajaj Auto was the largest exporter with 1.26 million units, followed by TVS Motor (2.6 lakh units). India Yamaha Motors was the fourth largest with shipment of 1,29,394 units, a growth of 45%.
Venki Padmanabhan, CEO, Royal Enfield feels having a product designed for the developed market specifications may very well put the company in a strong position in the Indian market. But these are cult bikes, that are owned by bike connoisseurs and few in numbers.
"The consumer activism is rising at such a level that no longer can one afford to have a differentiated product for overseas markets and India. The consumers today are knowledgeable, they travel a lot, and they have a reference to the products in developed markets and they want the same here. The Classic was developed keeping in mind the matured markets of Europe and US and look at the response we have got for Classic in India," said Padmanabhan.
Japanese two wheeler majors such as Honda, Yamaha, Kawasaki & Suzuki along with their joint venture partners have played a significant role in transforming the Indian two wheeler market once the sector was opened up by government in the 80s.
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Chevrolet Cruze
A perfect blend of luxury and Performance sedan car, check now!
Chevrolet.co.in/Cruze
Just Sign In- Get Rs 2000
Get Free Rs. 2000 Shopping Voucher. Limited Offer - Sign Up Now!
Jabong.Com/Vouchers
The Indian market which was heavily driven by scooters saw the emergence of trendy motorcycles, which became the ultimate transportation for middle class in 90s. It caught the fancy of the youth and became a preferred choice due to the power, fuel efficiency and safety it offered because of larger wheelbase. Today India is predominantly a motorcycle market constituting 80% of the overall two wheeler market, which stood at 13.43 million in FY-12
V G Ramakrishnan, senior director at Frost & Sullivan says exports to the developed markets has happened in the car industry before, it may not have gone back the MNC's origin but the car exports to developed market has given India the quality stamp. "So from quality standpoint Yamaha has no worry, plus exports helps the company to battle volatile currency (appreciating yen and depreciation rupee) and build volumes which improves the competitiveness back in India," said Ramakrishnan.
The yen is one of the currencies to appreciate against the US dollar. The Japanese currency has appreciated 10% over the last two years against US dollar, while currencies including the Indian rupee have depreciated. The current currency equation will also stand in good stead for quality Indian products in Japan.
Yamaha in 1985 joined hands with Escorts to set up a joint venture to manufacture motorcycles in India. Around the same time, the Munjals of Hero group signed up a joined venture with Honda and TVS and Suzuki teamed up. Over time, the three joint ventures were disbanded and the Japanese companies and their Indian partners decided to go alone in India.
In a first India made bikes to hit Japan roads; Yamaha to export bikes from Surajpur plant - Economic Times
