The cheapest motorcycle from Dawood Yamaha available in Pakistan is Junoon YD70, which is priced at 48,750 PKR and Yamaha motorcycles is about to launch the cheapest motorcycle in India which will be priced at only 375 Euros or 44,000 PKR only.
Last year the Japanese manufacturer sold 520,000 bikes in the Indian market and with the new bike they are looking to increase this figure to two million by 2016.
In an interview with the Wall Street Journal Hiroyuki Suzuki, chief executive of Yamaha’s India division said: “We have so far done well with our premium motorcycles in India and now we think is the time to address a bigger part of the market where volumes are high.”
Yamaha currently sells its 110cc motorcycle models Crux and YBR in India, priced at 36,300 rupees ($635) and 43,500 rupees ($760), respectively. Almost all competing brands are in the same price range.
“Just about one in every 25 people in India owns a two-wheeler,” Mr. Suzuki said. “There is a huge scope to attract more buyers with a fuel-efficient product that is priced reasonably.”
Yamaha is investing 23 billion rupees in India in the next five years to develop new products, build a new factory and raise output to meet the expected surge in demand. By 2018, it plans to make about 2.8 million vehicles a year in India, up from about 600,000 now.
The company aims to boost its sales in India to two million vehicles by 2016, from 520,000 in 2011 and a targeted 640,000 in 2012.
Mr. Suzuki said Yamaha will sell at least three new scooter models in India in the next two years, one of which will be introduced by October.
While Yamaha is still negotiating with Pakistani government on various issues for their planned investment in Pakistan. The latest one being that Yamaha is of the view that they are bringing new technology to Pakistan and being a new entrant they need some additional benefits to survive in the existing competitive market of Pakistan, for that they demanded that Yamaha must be allowed to import parts at a duty of 5%.
Pakistani government didn’t agree and informed them that the import duty was already brought down from the 15% to 10% which is acceptable to all the players of the industry.
Given the size and potential that the Pakistani market offer, Yamaha will be here soon giving our publish some much deserved new models motorcycle built with not decade old technology but new one.