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Yamaha India planning to expand its sales in rural market





Yamaha, the Japanese bike manufacturer’s Indian unit is now planning its expansion by entering markets rurally and aims to offer new reasonable models. Yamaha has a strong brand name already in the urban segment and now taking a curve to focus on rural markets.

Roy Kurian says Yamaha had seen strong sales in urban sector due to the pre-existing image as a bike manufacturer that manufactures premium bikes, and in hopes of upping their growth, they want to make their presence felt in the rural areas.

Yamaha sold around 3,80,000 units in 2010 in the 2-wheeler bike market in India while currently they look forward to selling 5,20,000 units this year.

Talking about expansion plans in depth rurally, Mr. Kurian elaborated by saying the company’s share in the rural areas is 40%, and they wanted to increase this margin significantly in the days to come.

Yamaha

At the moment, Yamaha’s selling through a network of 400 dealerships in India and plans for further expansion in this regard is on the cards. Yamaha delivers low-cost bikes like Yamaha YBR 110 and Yamaha Crux both of which are affordable and doing well and well received by customers rurally.

With a strong brand name in the urban sector and known as a premium bike manufacturer, Yamaha’s intention to penetrate into the rural areas now is a good sign. Many manufacturers are trying to push their products rurally in hopes of achieving a better share in the market. Other Japanese manufacturers like Honda have already confirmed their interests in the rural market with Hero MotoCorp joining the race too. With already peaking petrol prices, customers are going for affordable bikes that are fuel efficient. Bike makers also have a huge task fulfilling the fuel efficiency part. Yamaha has the technology to penetrate into any market, and with an experience such as theirs, eventually they should be able to achieve their targets.

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