Yamaha 2012 Annual Report Download - page 32

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India
Enhancing product competitiveness and sales strength
In light of the country’s political and economic stability, the Indian market is expected to
experience rapid growth in demand for motorcycles. Yamaha Motor is endeavoring to
maintain our product competitiveness through enhanced functionality and design, and to
expand our customer base and strengthen our presence in the mass-market segment.
In 2012 we entered the scooter category, the Indian market’s volume zone, with
the launch of the CYGNUS RAY, which has had a very positive market reception. Under
the new Medium-Term Management Plan, we intend to proactively launch new products
in both the scooter and low-end motorcycle categories.
In terms of marketing, we are building global-standard dealerships to expand our
sales network and reinforce high-quality contact with customers, as we build a business
base suited to this rapidly growing market.
Raising functionality as a global development and
production center
The Indian Integrated Development Center commenced operations in February 2013, as
part of our strategy for global optimization based on global coverage via four centers.
With the aim of 30% local development, we are accelerating our engineering,
manufacturing, and marketing with lower costs and at local market quality standards, to
support our product competitiveness both within the Indian market and for exports.
India’s domestic motorcycle demand is currently more than 14 million units
annually, and to meet this demand we are building a new manufacturing center adjacent
to the development center. We intend to increase our local production capacity to achieve
domestic shipments of one million units and exports of 240 thousand units in 2015.
New manufacturing center increasing
production capacity in India
In 2012, we acquired a roughly 440,000 m2 site in an industrial
park in Vallam Vadagal on the outskirts of the city of Chennai, and
began construction of a new factory that is scheduled to commence
operations in 2014. The new factory will employ a “theoretical-
value-based production” concept that operates on a system of
completely synchronized manufacturing of parts and assembly of
complete motorcycles, to achieve a high level of productivity.
2011 2013 (Plan)2012
Motorcycle unit sales in India
Total demand (Ten thousand units)
Exports (Ten thousand units)
Domestic (Ten thousand units)
17
34
15
35
21
50
1,308 1,381 1,440
SPECIAL FEATURE: Engineering, Manufacturing, and Marketing to Raise Our Profi le
Yamaha Motor Co., Ltd. 󱚈 Annual Report 2012
30
Snapshot
Interview with the
President
Special Features
Overview of
Operations
CSR Section
Corporate
Information
Financial Section