Yamaha India will soon be developing the cheapest bikes in the world till date. The bike is expected to cost only Rs. 27500 (about $500 as of the present conversion rate). Though the bikes will be developed by Yamaha India, the target market however will be the African market. There is a healthy demand for such bikes in the African market.
The growth potential in Africa is high and that is why Yamaha India wants to cash in on the opportunity – literally. There is, however, good news for the Indian consumers as well. Yamaha India might have the bikes for the Indian market as well. The company will also produce entry level vehicles for India.
As of now, Yamaha has the cheapest bike available for the Indian consumers. The bike is Crux and is priced at Rs. 38,365. CD-Dawn is another bike that is low cost from the house of Hero MotoCorp. It is priced at Rs. 36,300.
Mr. Hiroyuki Suzuki, who is the chief executive officer (CEO) and managing director (MD) of India Yamaha Motor expressed his views that their product benchmarks as far as the price tag is concerned is the Crux and YBR 110. He further said that the company is still planning to have bikes with cheaper costs for the African market.
After India, the African market is tagged having the most potential. There are around four million two wheelers that are sold in the various African markets per year. One of the hottest places is that Nigerian market. In Nigeria alone, there is a demand of around 1.5 million units every year. This market has seen a growth of more than 30 per cent.
The good thing for the auto manufacturers is that there is still a lot of potential and the same growth may be seen for another ten years or so. The per capita income in Africa is indeed too low. No wonder, bikes are literally used as taxies there. That is why the markets there have remained under explored. This means there is a larger possibility of tapping the market.
The African markets are dominated mainly by the Indian and the Chinese auto makers. Japan has almost a negligent presence in Africa at the moment. The Bajaj Boxer accounts for the bulk of the bikes sold there every year. Bajaj sells in the region of 60,000 units in Africa each year.