Yamaha India to export bikes to Japan

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.