Yamaha bets on new rollouts

Yamaha Motor India is to launch two motorcylces next month, with an emphasis on design and style. The launches are meant to fit in with Yamaha's strategy to introduce 'superior' products that pull customers to the brand.

Yamaha India on Monday unveiled a 106cc motorcycle, Libero G5, that is to be formally launched in the second week of July. The Libero G5's base model would cost Rs 40,999, excluding taxes.

Earlier in the month, the company unveiled a 125 cc vehicle, Fazer, which is to be priced around the Rs 45,000 range. Fazer would be launched in the first week of July.

The next Yamaha launch could be in the entry segment (Rs 27,000-Rs 37,000), said a company official. Currently, the company's entry level model, Crux, makes up 50 per cent of its motorcycle sales.

The Fazer and Libero G5 launches would add to Yamaha's product basket in the executive segment (Rs 38,000-Rs 45,000), the largest section of the motorcycle market with a 54 per cent share.

Yamaha's Libero LX has been positioned at the start of the executive segment, while the forthcoming launches are positioned higher, in terms of price and aspiration. Yamaha India's launches are meant to dovetail the three-fold strategy articulated today by Hiroyuki Yanagi, CEO and managing director.

Yanagi said the company aimed to introduce "superior products;" create a brand pull through stylish vehicles and strengthen its distribution and service networks.

The most recent motorcycle launches in the executive segment, Hero Honda's 125 cc Glamour and Yamaha's vehicles, have all emphasised on design.

Officials from the companies said that customers in the executive segment had become more conscious of style and design. These features had begun to play an increasing role in decision making, they said.

"Yamaha India is changing its gear to transform the market from utility to pleasure," said Yanagi. "Various projects are going on," he added in response to a question on launches in the premium segment of the market (above Rs 45,000) with a 150 cc engine.

Yamaha India sold 2.5 lakh units last year to earn a revenue around Rs 900 crore, said Yanagi. The company aimed to sell 3 lakh units in the current year, he added.

Yamaha's market share in India stands at 5 per cent at present. One of the company's stated aims is to bring its domestic market share in line with its global share. Worldwide, Yamaha stands next only to Honda in the motorcycle business.