Yamaha to launch Honda Activa competitor in 2014

Yamaha Motor India, the Indian subsidiary of Japanese two wheeler giant Yamaha, is looking to strengthen its automatic scooter portfolio. Yamaha's current line up includes two automatic scooter variants, the Ray and the Ray-Z. While the Ray is aimed at women, the more-aggressively styled Ray-Z is aimed at men. According to BusinessStandard, the new automatic scooter that Yamaha plans to launch in India is said to be an unisex model that will rival the country's best selling scooter, the Honda Activa.

Note: Images of the Yamaha Ray and Ray-Z used in this report are illustrative in nature. 

The new automatic scooter from Yamaha is likely to sit above the Ray range in terms of price and positioning. Unisex appeal and a larger size means that the new scooter could appeal to a wider swathe of automatic scooter buyers in India. The engine capacity of the new scooter offering from Yamaha and other technical details remain unknown for now. The scooter is likely to be unveiled at the upcoming 2014 Indian Auto Expo, in a strategy reminiscent to the one that Yamaha took with the Ray.

The Ray was first unveiled at the 2012 Indian Auto Expo, in concept guise, and Yamaha followed up this unveil with an official launch held later that year. The automatic scooter segment is a high growth area in the Indian two wheeler market, what with the segment showing a consistent year-on-year sales growth, outstripping the sales growth of the overall two wheeler market. The biggest selling point of an automatic scooter is the convenience it offers in chaotic traffic conditions. 

With the urbanization of India happening at a steady clip, more and more commuters are opting for the convenience that an automatic scooter offers. To capitalize on this demand, Yamaha has plans of adding capacity through a new, greenfield factory, that is likely to become operational by the end of 2014. The new factory will produce both motorcycles and scooters, aimed at the domestic and export markets. In view of the additional 1.8 million units/year capacity, expect Yamaha to launch many more automatic scooters in India.