Escorts Yamaha plans to launch its own four-stroke motorcycle to give Hero Honda a run for its money. This was revealed by a leading financial daily.
Escorts enjoys a presence in tractors (20% market share in 1HFY2000) and motorcycles (13% share). In motorcycles, it has a tie-up with Yamaha of Japan.
In an attempt to ride the booming growth in the motorcycle segment, Escorts Yamaha has outlined plans to launch a four-stroke motorcycle. It plans to carve a niche in the segment, and challenge established players like Hero Honda, and TVS Suzuki.
The company also plans to beef up its current range, by offering new variants of Yamaha-YBX. This will be targeted at consumers who are willing to shell out a little more money than the price of its basic version.
But competition is not sitting idle. Hero Honda itself plans to launch some variants of the CBZ(ee) model, as also Street, Splendor and CD-100.
Even scooter manufacturers have realised that all the action is in motorcycles, and have shifted focus away from scooters to motorcycles. LML, a scooter manufacturer, will launch its motorcycle in FY2000. Bajaj Auto has also modified its product profile and will increase exposure to motorcycles. With competitors incorporating features to catch consumer fancy, it's a very competitive market out there, and manufacturers will find it difficult to sustain market share over a period of time.
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