Mar 6, 2007

5 Yamaha India hangs on to Indian market despite losses

Yamaha India is trying to gain a foothold in the ultra competitive Indian market.. despite 6 straight years of losses

A few days back I made a post on how Economic Times got hold of an internal circular of Yamaha motor. The circular asked the employees to improve productivity or else Yamaha might close down shop in India.

"Yamaha wants to create a niche market in the 200 to 250 cc category. Yamaha is also exploring the possibility of hitting the market with high-end performance bikes (R1 & R6)..."

Now a report on MoneyControl.Com states that Yamaha is giving ( according to Moneycontrol) one final shot in India. the report states that Yamaha has incurred losses in tune of 1000 Crores in the last 6 years..!!

In charge of Yamaha's new India strategy is its new Managing Director, T Ishikawa, the man who turned around Yamaha's Thai operations (which was supposed to have similar problems for Yamaha in Thailand). The "Circular" stated earlier was signed by Mr. Ishikawa.. maybe it was a part of this new "India Strategy".

Mr. T. Ishikawa MD Yamaha MotorsMr. T. Ishikawa (MD Yamaha Motors India)


Money Control also states that Yamaha is pumping in Rs 800 crore over the next four years. Also that "the market is abuzz with rumours of a possibility of a Bajaj - Yamaha alliance". Although Yamaha hasn't denied it the Alliance doesn't seem to be a possibility at least in the near future.

According to MoneyControl.Com, that Yamaha wants to create a niche market in the 200 to 250 cc category. Yamaha is also exploring the possibility of hitting the market with high-end performance bikes (R1 & R6).

There has always been high hopes from the Japanese Biggies, especially Yamaha... The offerings so far has been less than satisfying for the enthusiast. Lets wait and see if they are willing to oblige this time.

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This is to remind that the Views or Opinions in the blog are entirely mine unless explicitly stated. The Views and Opinions published in this blog should in no way be related to any other person or organization associated -- directly or indirectly -- with me.


Anonymous said...

It will be better for yamaha to stop its production in india if they wish to continue in the same manner in which they are playing for the past 10 years or so.After the legendary RD350 and RX100, yamaha people have failed utterly in the performance bike market. Can you believe that a company like yamaha is not offering bikes with more than 125cc capacity. Yamaha people are not aware that their older bikes like RD350 are still being sold around 50-60K in the used bike market.Its costlier than a new Gladiator, another absurd "performer" from Yamaha india.Full congradulations for our real indian performer BAJAJ which fully understood the mind of the indian youngsters who threw these japs out of the market.MERA BHARAT MAHAAN....

Payeng said...

I agree with you Anonymous.. But don't just blame Yamaha..

In fact all the Mighty Japs.. Honda, Suzuki and Yamaha have failed to catch the imagination of the biking population..

And along with BAJAJ don't forget TVS MOTOR for making us proud..!!

Anonymous said...

i blamed yamaha just because their strategy is too irritating- using the same 125cc motor for the past 10 years or so changing the stickers and names every month- YBX, YD 125, LIBERO, FAZER, G5, GLADIATOR....old wine always in new bottle.I am a strong YAMAHA fan and i strongly believe that if they offers a nice 250cc motor now within no time against the pulsars, yamaha is going to win the crowd.

Anonymous said...

I fully agree. I have lived abroad and used some and seen many great bikes from Yamaha . I really pitty who is advising Yamah in India to stick to mass transport bike in 100-125 cc whereas for Yamaha the market segment is totaly different. If they introduce 250 CC i will buy tommorrow. Same is the case with Toyota that they have class hatch back " Toyota Starlet" it is far superior to swift, getz, spark, zen, and many more. They have not introduced the same.

Good sense should prevail in their marketing startegy for India.


Anonymous said...

Boss, I like ur comments. And i appreciate u for being YAMAHA fans. But boss, if u r so eager to have higher cc bikes from YAMAHA then y dont u go for R1, R6 and MT01 which are superbikes. Hardly any company will have such jewels. I think these bike will quench ur thirst...And gals will die to have ride with u on these jet planes...Just go for it. And just wait and watch for YAMAHA's new stunning offerings till 1st quarter of 2008

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