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Mar 16
Love0

Yamaha Expects India to Become its Largest Production Base in 5 yrs

By General Posts

Markets in Indonesia, Vietnam saturating; India priority No. 1, says top executive.

Japanese auto major Yamaha Motor Company (YMC) expects India to overtake Indonesia to emerge as its largest base in terms of production output in the next five years.

“India sells more than 20 million two-wheelers annually and the numbers are growing. Our company’s market share is in single digits. We want to improve this. There is a lot of opportunity,” says Yamaha India Chairman Shitara.

Two-wheeler sales in India increased 6.95% to 19,740,727 units till February this fiscal. In the same period, India Yamaha Motor’s sales remained largely flat at around 732,006 units. The company additionally exported 226,010 units.

Yamaha Motor India’s group chairman Motofumi Shitara was speaking on the sidelines of the launch of MT-15 priced at ₹1.36 lakh (ex-showroom, Delhi).

“India is priority number one for us worldwide. We aim to have production volume of 2.5 million units in India in the next five years,” he said.

Going ahead, Shitara said the company would steer clear of the mass segment and focus on launching premium motorcycles in the domestic market. The company has also commenced a study on introducing electric two-wheelers in India.

Shitara is currently defining the mid-term roadmap for the company till 2025 to lay the foundation on how the brand Yamaha takes shape the country. Apart from growing volumes, Shitara said a focus area for him is to project a strong image for the Yamaha brand in the local market.

Yamaha MT-15 was launched on Friday – a 155cc bike with liquid-cooled four-stroke engine mated to a six-speed transmission. MT-15 is priced at Rs 1.36 lakh ex-showroom. It has ABS and fuel injected variable valve actuation (VBA).

On the idea of electric motorcycles, the Yamaha Chairman says – “Three points are important, one is performance. Second, is price control. And third, infrastructure for battery charging. These three issues we should answer (for electric vehicles to take off)”, Shitara said.

Mar 05
Love0

No silver bullet in sight for Enfield hit by sliding volume

By General Posts

The Eicher Motors stock fell 30 per cent in the past year.

The Bullet, it appears, is just not firing on all cylinders at the moment.

Royal Enfield (RE) sales are rather soft, and state-wise volume statistics furnished by industry body SIAM show that the bike that defines panache for motorcycle enthusiasts in India is riding through a rather rough patch. Eight states that make up three of every five RE bikes sold locally have reported deceleration.

Maharashtra and Karnataka together account for 13 per cent of RE volumes, and these two states have seen a drop in 6-7 quarters of the past nine.

Kerala, the largest market of RE, has witnessed volume drops of 13 per cent and 23 per cent in the September and December quarters, respectively. The September decline is attributed to floods. But declines in the December quarter have put the lens on underlying demand.

Industry volume growth of twowheelers in south India was 9.5 per cent in the first nine months, up from 5.6 per cent in the previous year. However, RE’s sales volume growth in the Southern states has been underwhelming.

The RE management has given production guidance of 8.7-8.8 lakh units for the current fiscal year. However, it is unlikely to be met. Average monthly run-rate of RE in the first 11months of FY19 stood at 69,569 units. To achieve the stated guidance, the company needs to produce 1.04 lakh vehicles in March. This appears to be quite a daunting task given the weak demand cycle.

The Street is factoring in volume growth of 10 per cent for FY20, which could be trimmed due to about 3 per cent growth in FY19. The Eicher Motors stock fell 30 per cent in the past year following constant negative surprises on the volume front. The stock is trading at 21 times FY20 earnings, compared with the long-term average of 30 times.