Yamaha MT-09 hints at an India-bound MT-03

When it comes to large-displacement motorcycles, Yamaha is one of the world’s best-known brands. In India, the company has been betting big on its small-capacity scooter portfolio, mainly to cash in the rising demand in the emerging Asian countries, which includes India as one of the key markets.

While it continues to register consistent progress in the scooter market, company officials say the company has not lost its sight of the motorcycles. At last month’s Auto Expo in Greater Noida, it commercially launched the three-cylinder, 847cc, 83bhp MT-09 street motorcycle, and announced that the model would be brought to the showrooms as a complete built unit (CBU).

The motorcycle, which bears a price-tag of Rs 10.20 lakh (ex-showroom, Delhi), becomes the first model from Yamaha’s MT Series to be brought to India. This goes in line with the company’s top-down strategy, which it follows while entering a market with new products.

For example, Yamaha first launched its globally known superbike, the four-cylinder, 998cc YZF-R1, followed by the entry level single-cylinder, 149cc YZF-R15 that comes under the same R Series. This clearly decodes that the launch of the MT-09 has opened the doors for its smaller siblings within the MT Series.

Speaking to Autocar Professional recently, Roy Kurian, vice-president (sales & marketing), Yamaha Motor India Sales, said: “We have just brought in the MT series via the launch of the MT-09 as a CBU. Although I won’t be able to comment on the upcoming products, all I can say is that we follow a top-down approach at Yamaha and that’s how we are thinking.”

Sources aware of developments at Yamaha had previously pointed out that the company is planning to launch a twin-cylinder, 321cc MT-03 motorcycle and Autocar Professional had reported the same. The launch of the Yamaha MT-09 in the local market further confirms the same.

But why it’s time for MT-Series to step in?
Market statistics convey that the company is garnering more sales from its scooter portfolio (Fascino, Ray variants and Alpha) than its 150cc motorcycle portfolio (variants of the R15, FZ, Fazer and SZ-RR), which was previously its bestseller.

To add to that, the company has also launched a variant of its 113cc Ray scooter, the Cygnus Ray-ZR, and Kurian expects the new variant to fetch sales of up to 10,000 units per month. While this will ramp up sales of Ray variants up to 18,000 units a month, the Fascino, Yamaha’s bestselling scooter, is now known to be fetching stable sales of more than 15,000 units a month. In January 2016, the company sold close to 18,000 Fascinos.

Talking about the need to rejig or re-engineer its existing 150cc motorcycle models, Kurian said: “I can recall that in 2010, the market size for the deluxe motorcycle segment (referring to engine displacement of more than 125cc up to 180cc) in the industry stood at close to 110,000 units a month. It was dominated by the 150cc models. We were selling around 15,000 units a month at that time. Since then,  this space has not grown much. This category of motorcycles still stands at close to 125,000 units per month. On the other hand, I see buyers directly migrating to the premium segment. So while this segment has remained stagnant, we have been able to maintain our sales at 18,000-20,000 units per month. [Industry statistics reveal that Yamaha’s total sales in the 150cc segment including FZ, SZ, Fazer and R15 stood at 24,768 units in January 2016]. So we are happy with this, and I do not think that we need another re-engineering in these products. Instead, what we need is another series such as the MT-Series. So the deluxe and the premium segments can be represented through the FZ-Series, R-Series and then the MT Series.”

Following its medium-term plan, which outlines a sharp focus on mass volumes from India, the company is working towards expanding its reach into newer territories. Though it has discontinued its mass commuter motorcycle models (Crux, YBR110) recently, it plans to return to that segment with new / refreshed models. The company, which had 400 dealerships in 2014, closed 2015 with over 500 dealers. “We are looking to close 2016 with 650-700 dealerships,” added Kurian.