India Yamaha Motors, subsidiary of Japan’s Yamaha Motor Company, is leaving no stone unturned to meet its targets, which involves setting up a third plant, launching new products and expansion of sales reach to rural areas.

The two wheeler company, fifth biggest bike producer in the country is finalizing details of its third facility (it would be its second vehicle manufacturing plant), that would enable it to increase its 10% targeted market share over the next two years.

Although company officials did not comment on the size of the proposed new plant, sources said it would have a capacity to churn out more than one million units per annum.

Yamaha is presently expanding capacity at its Surajpur, Uttar Pradesh, plant by 66% to one million units from 600,000 units annually, at present. The company is spending INR 50 crore towards this expansion.

This will allow it to make automatic scooters and the new line of motorcycles it is planning for launch in India. These include a new motorcycle on the lines of the SZ series and perhaps a 200cc bike, though the Yamaha India management did not confirm this.

Mr Roy Kurian national business head said that “The launch plans of the scooter range is on track and they will hit the market next year. We had done an internal market study for bikes in the upper segment and, although I can not comment on the product plans, parallel plans of R&D are running always.”

Encouraged by the sales performance so far this financial year, where it clocked growth of 34% with sales of 281,000 units, the company is confident of surpassing its own set target of 310,000 units and finishing with 330,000 units by December. He added that “We are confident of reaching our milestone of one million units in 2013-14 and should close next year with sales of 450,000 units. This will include the new products.”

(Sourced from BS)