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Yamaha to develop $500 bike in India for global markets

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Yamaha to develop $500 bike in India for global markets - The Economic Times


NEW DELHI: Japanese two-wheeler giant Yamaha today said it is working on to roll out a motorcycle priced at around $500 from India with the setting up of its fifth global research and development centre.
Claiming that the bike will be "the world's cheapest motorcycle", the company said India will become the global hub for development of low-cost bikes, which will be exported to other countries in Africa and Latin America.


The company's new entity Yamaha Motor Research and Development India Pvt Ltd (YMRI), which was established at Surajpur in Uttar Pradesh in February this year, has already started its work to develop the product that will be first launched in India.

In order to enhance its position in the Indian market, the company will launch a new scooter model each year till 2016, apart from setting up its second R&D centre by 2015 at its upcoming Chennai facility.

"Our objective is to develop the lowest cost model in the world and lowest cost parts. Our target is to develop the cheapest bike at around USD 500 for both India and export markets," YMRI Managing Director Toshikazu Kobayashi told reporters here.

Without sharing any timeframe of launch, he said the company is developing the bike with an engine capacity of 100 cc or more as "smaller bikes with smaller engine do not have good balance".

"We will first launch the bike in India. There are also other markets like Africa and Latin America where such bike can be sold. We will export the product to such locations in future," Kobayashi said.

As per the plan, the first step will be to develop the world's cheapest bike, followed by an India-specific model. This will be followed by a global model in future, he added.

Yamaha's move is part of strategy to expand presence in the commuter segment, specially in the Indian market.

"We have been focussing on sporty, stylish and performance bikes in India so far. Now we are looking to increase our presence in the commuter segment. Developing the product in India will give us a substantial cost advantage and enable us to price it competitively," India Yamaha Motor (IYM) Chief Executive Officer and MD Hiroyuki Suzuki said.

He said the company is looking to sell 7.1 lakh units of motorcycles and scooters this year, including 2.1 lakh of exports. IYM had sold a total of 4.9 lakh in 2012.

"Our long-term target is to sell a total of 28 lakh units by 2018. We are aiming to sell 10 lakh units in 2015 that will include exports," he added.
 
MW ropes in TVS to make sub-500cc bikes



TNN | Apr 9, 2013, 04.55AM IST
CHENNAI: For the first time in its history, German auto major BMW is getting into the sub-500cc motorcycle market globally in collaboration with Chennai-based two- and three-wheeler maker TVS Motor for a "strategic realignment".

TVS and BMW Motorrad, the motorcycle division of BMW, have signed a "long-term" technical agreement to jointly develop, engineer and manufacture a range of sub-500cc motorcycles. The new premium motorcycle range will come with two distinct variations in specs — one badged BMW to be sold by BMW in India and globally and the other badged TVS to be sold in India and any global market that the Indian company wants.

For the moment, there is no equity stake involved. TVS chairman Venu Srinivasan indicated that the company will invest 20 million euros earned from internal accruals in the project. BMW Motorrad president Stephan Schaller declined to comment on product development investments.


The tech tie-up will offer BMW products in a new category which will help garner growth in emerging markets like China, South-East Asia and Latin America.

"We will introduce this new premium series in both our home markets in Germany, France or the US as well as emerging markets like South-East Asia, China, Brazil and India," Schaller said. "We are committed to profitable growth and in our existing range we are among the top two or three in the world. So, additional growth can only happen in the lower cc range," he added.

For TVS, the tie-up will offer products in the 250cc category where it isn't present right now and a technology rub-off across its manufacturing line-up. The products spawned by the tech agreement would roll out in 2015. "BMW's technology and quality standards are significantly higher than anything we have seen and there will be a direct rub-off on our engineering and tech expertise and an indirect rub-off on the whole system in TVS," Srinivasan said. The new range will be manufactured in one of TVS' current facilities — either Hosur or Mysore — although there will be additional investments in tooling, machining and manufacturing of certain parts.

BMW ropes in TVS to make sub-500cc bikes - The Times of India


Something similar to OP..... BMW was the only company which was not present in indian market. Now they are also here..... :)
 

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