Japanese two-wheeler major Yamaha will focus on premium bikes and scooters in India going forward as implementation of BS-VI emission norms from April 2020 will prove to be a challenge in offering affordable entry level motorcycles, according to a senior company official.
The company, which currently has a market share of 13 per cent in the 150 cc-plus motorcycle segment in India, is aiming to increase it to 20 per cent in next 3-4 years time, Yamaha Motor India Sales Pvt Ltd Senior Vice President, Sales and Marketing, Roy Kurian told PTI.
"After BS-VI comes in, there is going to be some disruption happening in the 100 cc as it would need fuel injection technology...if that is there, would it be good enough for a customer to buy that or would he like to upgrade to 125 cc or 150 cc, or he will move to scooter," he said.
So considering all, he said for the time being, the company would focus more on the premium bikes and scooters.
Elaborating on the company's ambitions, he said out of the total motorcycle sales of around 19.5 million, the premium segment is 3 million and is growing and Yamaha would leverage on its brand equity in the category to grow its market share.
"If we focus, here we can look at 15-16 per cent and try to take it to 20 per cent market share in next 3-4 years time," Kurian said, adding the company at present has 13 per cent share in the premium segment.
On scooters, he said, although Yamaha was a late entrant, it currently has equal contribution from motorcycles and scooters in India.
"That is the kind of numbers we have been able to generate from scooters in the last 3-4 years time," he said.
There is lot of traction happening, people are moving from 100 cc to scooters specially in tier 1 and tier 2 cities. This will continue to happen and after BS6 it will further happen, Kurian added.
Last year, the company sold a total of 7.5 lakh units in the domestic market and is aiming to sell 9.6 lakh units this year. Besides, it is looking to increase exports to 2.5 lakh units this year from 2.3 lakh units last year.
Although premium bikes and scooters would be Yamaha's forte in India, Kurian said the company would not totally ignore 100 cc because its customers will remain forever.
"So we also need to look into that 100 cc and 125 cc and continue and see what kind of innovations can be done in this segment with BS-VI. We are working on it. As far as technology is concerned, we don't have to worry about that," he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)