Nepal Yamaha India´s third largest importer
In Nepal, Yamaha bikes registered a 60 percent growth in 2008 and 52 percent growth between January and November this year. Yamaha also has a 20 percent market share here -- 25 percent share in the 150 cc segment, according to Morang Auto Works (MAW).
IYM is also planning on rolling out new models in January. The two-wheeler company made big inroads during the last two years and hopes for an even bigger share in the future. Yamaha is also researching on the Electric Fuel Injection (EFI) system to bring down the cost of the technology so that it can be pitched to a larger group of potential buyers, Tsuji said.
MAW, the sole-authorized distributor of Yamaha two-wheelers, is also planning to open what it calls the biggest showroom and service station for two-wheelers in the capital soon.
According to MAW CEO Vishnu Kr Agarwal, the two-story structure, which covers around 10,000 sq feet, will cost around Rs 20 million and can service 200 bikes a day.
IYM´s current product portfolio in Nepal includes the Alba, G5 and Crux in the entry-level 100 cc segment; Gladiator SS and RS and Enticer in the 125 cc segment and R15, Fazer and the FZ series bikes in the 150 cc segment. The company is represented by 28 dealers, 35 sub-dealers and 21 authorized points across the country.
In an interview with myrepublica.com, Yukimine Tsuji talked about IYM´s growth in Nepal, its new models, strategy and future plans.
Excerpts:
Myrepublica.com: How have Yamaha bikes done lately?
MAW spending Rs 20m on new center
Yukimine Tsuji: For ten years or so, we lost a lot of our valued customers. But over the last two years, we have managed to bring them back and also to add new ones. We owe this to our 150 cc bikes, starting from the R15 to the FZ series and the recently launched Fazer.
This time we shifted our focus to the 150 cc range, through which we sought to reestablish our brand. We have spent around IRs 6 billion in the last two years on infrastructure, new moulds, parts and assembly units. We now manufacture 600,000 units a year working in two shifts. If demand rises even more, we can add another shift. Next year, we hope to increase our total exports to 150,000 units.
In Nepal, we expect a growth this year to equal last year´s. When I was traveling around the city in the last two days, I was happy to see so many Yamaha customers. I was even happier to see that riders seemed to be enjoying their Yamahas. And because of its proximity to India, Nepal is also the most important export market for Yamaha.
Myrepublica.com: Why did you choose to move into the 150 cc segment when you had been making 125 cc and below bikes for so long? Why do you think Yamaha has made such growth?
Tsuji: When you look at our base market in India, around 50 percent choose a Honda. But there are also people who do not want a Honda and it is for this remaining half that the big fight is. The 125 and below segments had been nearly saturated. There wasn´t much room for expansion while there was enough room to enter and prosper in the 150 cc market. Our strategy then changed to reestablish our business base through the 150 segment. We also changed our network system to regain customer trust.
Our three core base has been product quality, dealer network quality and human resource and job quality. By concentrating on these, we ensure that there is no problem and even if there is any problem, our sincere and caring networks will solve them immediately with a helpful and cheerful attitude. Our satisfied customers help increase our brand image more than the advertisements. Our theme is ´Touching Your Heart´ and we want to feel our customers´ happiness.
Myrepublica.com: What kind of a brand image does IYM like to project?
Tsuji: We like to project Yamaha as an enjoyable ride. It is vital and exciting. The bikes are sporty and high-performance commuter solutions.
Also to cut emissions and increase efficiency partnered with high-performance, we are working to advance the EFI system and also make it cheaper and smaller. In the future, maybe five years from now, all large displacement bikes in India will have EFI as its acceptance increases and cost comes down.
Myrepublica.com: What plans do you have for the near future?
Tsuji: The market for two-wheelers like ours is growing around the world. Right now, China and India make up the top two markets while demand is also growing in a lot of other countries in Asia, Europe and Africa. Earlier, the FZ series and R15 were exclusive to India and Nepal. Now, we have started exporting them to Columbia, the Philippines, Australia, and some parts of Europe and Africa.
Now that we have regained our valued customers´ trust, we are planning to unveil a few new models in the auto expo in India in mid-January next year. While the details are confidential, I can tell you that with these new brands, we hope to grow more in the commuter two-wheeler section.
Also MAW is building the largest 3S (Sales, Service and Spare Parts) station in Nepal and increasing its network both inside and outside the Kathmandu Valley. They are planning to reach places where roads have only just opened up. The focus will again be on customer satisfaction.
tapas@myrepublica.com
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