Our current focus is on low-cost utility bikes

The Indian motorcycle market is once again fast moving towards low-cost and utility bikes 100-110cc. We will aggressively push for our presence in this segment. At present,we are doing well in the 150cc segment with our Fazer. And to strengthen ourselves in the utility bike segment,we plan to shift our global Ramp;D centre to India for developing low-cost bikes. We will first set up a global procurement centre in India to both source and manufacture components for 100-110cc bikes. We also have medium-term management plans to enhance local production levels to meet the demand growth in emerging markets such as India. We would aggressively increase localisation through our procurement centre to keep tabs on cost and also enhance efficiency in our products manufactured for Indian and African markets.

What are the products you plan to offer to tap the market where you have minimal presence or none at all?

Our product benchmarks right now as far as cost is concerned are the YBR 110 and the Crux,but we would like to develop a bike in the low-cost segment for markets like Africa. The target is to make a bike that will cost 500 about Rs 27,500. I think such a bike will have a lot of demand in Africa as well as in India. We have also pinned high hopes on the upcoming launch of our new scooter. According to estimates,scooter sales will grow faster than the overall two-wheeler market at least till 2020. Our new scooter will be targeted at women and we are in the process of finalising a brand ambassador for the same.

How do you plan to increase your profitability?

I have given a diktat to all verticals spanning across marketing,Ramp;D and product development to attain a break-even by end of the current fiscal. Our new Chennai factory with an investment of R1,500 crore will be the first in the Yamaha Motor Company to have a vendor park in its vicinity that will bring together the production operations of main external parts suppliers,thus enabling complete synchronisation of external supplier parts production as well. This system will reduce losses in the areas of production management and distribution,and make the new production base highly efficient and profitable. In addition,our push for increasing localisation in India would help us achieve profits.

What are the targets you have set for yourself?

We aim to have production volume of two million units by 2016. Scooters will contribute 30 to our overall sales,the 150cc models will account for 40 and the remaining numbers will come from entry-level motorcycles.