Japanese two-wheeler maker Yamaha is working on a project to develop a small bike, which it aims to sell for around USD 500 (around Rs 30,000) in India, a top company official said today.
The company, which has launched upgraded variants under the FZ series - FZ Version 2.0 and FZ-S Version 2.0, however did not confirm any timeframe for the launch of the bike.
"The project is on. At this time we are not sure if the end product will cost USD 500, less or more. But we are working on the project keeping USD 500 as the benchmark price. We are trying our best," Yamaha Motor R&D India Managing Director Toshikazu Kobayashi told reporters here.
This is an important segment (small bike) that would help the company improve its market share in the country, he added.
When asked if the company would also like to take the product to overseas markets, Yamaha Motor India Sales CEO and Managing Director Asano Masaki said: "It is too early to comment as we don't know when it will be out but would like to add that India would be the first market for the product."
Yamaha currently has negligible presence in entry level bike segment in India, but is strong in 150 cc bike segment, where it sells around 18,000 units per month.
On the company's plans regarding the 100-125 cc bike segment, Yamaha Motor India Sales Vice President, Sales & Marketing, Roy Kurian said: "We are working on a top-down approach. We would first like to consolidate our position in the Deluxe segment (150cc) and the scooter vertical before venturing into other segments."
The company, which currently sells three scooter models in the country, has inched its way up to capture 6 per cent market share in the growing vertical.
On whether the current FZ and FZ-S models would be phased out, Kurian said: "We will keep selling them. There is a cost difference of around Rs 5,300 between the FZ and FZ-S and the newer variants launched today, so we would like to give customers a choice to buy whichever products suits their budget."
The company had first launched the FZ series motorcycles in India in 2008.
Commenting on the overall sales expectations for the current year, Kurian said: "In the January-May period this year we have grown by 32 per cent over the last year. We are expecting to continue like that in the rest of the year."
The company aims to sell 6 lakh units in 2014 as compared to 4.47 lakh units last year, he added.
