India Yamaha Motor (IYM) has set up a new facility, the Yamaha Motor Research & Development Indian (YMRI) unit at Surajpur, Uttar Pradesh, where development is already underway on new motorcycles.

It is here at this R&D centre that Yamaha has commenced development on an all new, low cost motorcycle that will fit into the high volumes commuter segment of the Indian market, and be considered for exports to suitable foreign markets. Target pricing for the new bike is close to Rs 40,000, and this next Yamaha will use an engine displacing approximately 110cc, taking on the likes of Hero’s Splendor and Passion X Pro, Honda’s Dream Yuga and CB Twister, Bajaj’s Discover 100T, TVS’s Star series bikes and the Suzuki Hayate.

The new centre becomes Yamaha’s second integrated development centre after Thailand, and their fifth R&D wing outside Japan, after Italy, Taiwan, China and Thailand. Yet another Yamaha R&D centre is to spring up in Chennai also, where this Japanese giant will focus on making low-cost scooters and other India specific models, today developed for us in Japan.

Expect Yamaha’s Indian motorcycle and scooter prices to drop in future, given that development costs for new bikes and scooters in India is approximately half that of similar development in Japan.