Japanese two-wheeler major Yamaha has started work on its first ever product to be developed entirely in India. As part of the company’s global strategy of developing 30% of its products outside Japan, Yamaha will use India as a product development and manufacturing hub for models that will be sold both in the domestic market as well as exported, said a top company official. The first of the developed-in-India models should roll out in two years.
“We have just established Yamaha Motor Research & Development India (YMRI) in 2013 and so far it has not developed a model from scratch in India,” said Roy Kurian, VP (sales & marketing), Yamaha Motor India Sales. “But in two years we will have a product developed entirely in India. We are already working on it. This product will of course be sold in India but we’re also looking at export options.”
India’s low cost reputation is responsible for the Japanese company using it as a production hub.
"India is a good hub thanks to the huge domestic consumption which helps bring the cost of production down,” said Kurian. “That’s why we’re using India for both production and export to markets in South America and Asean.”
To that end, Yamaha is already investing Rs 1,500 crore in its new plant and another Rs 750 crore on ramping up capacity in its existing facility. “The new plant will be operational by 2015,” said Kurian. Yamaha clocked top gear growth in 2013 at 33% — it sold 4.6 lakh vehicles including 1.5 lakh scooters — compared to 4% clocked by the two-wheeler industry in India. “We expect similar growth in 2014 as well,” said Kurian.
“We have just established Yamaha Motor Research & Development India (YMRI) in 2013 and so far it has not developed a model from scratch in India,” said Roy Kurian, VP (sales & marketing), Yamaha Motor India Sales. “But in two years we will have a product developed entirely in India. We are already working on it. This product will of course be sold in India but we’re also looking at export options.”
India’s low cost reputation is responsible for the Japanese company using it as a production hub.
"India is a good hub thanks to the huge domestic consumption which helps bring the cost of production down,” said Kurian. “That’s why we’re using India for both production and export to markets in South America and Asean.”
To that end, Yamaha is already investing Rs 1,500 crore in its new plant and another Rs 750 crore on ramping up capacity in its existing facility. “The new plant will be operational by 2015,” said Kurian. Yamaha clocked top gear growth in 2013 at 33% — it sold 4.6 lakh vehicles including 1.5 lakh scooters — compared to 4% clocked by the two-wheeler industry in India. “We expect similar growth in 2014 as well,” said Kurian.
