Japanese auto giant Yamaha has plans to develop a $500 motorcycle to be launched in the Indian market. Reports say that the new motorcycle will be launched in order to achieve a target of a ten percent market share by the year 2016.

Hiroyuki Suzuki, the chief executive of Yamaha Motor said “We have so far done well with our premium motorcycles in India and now we think is the time to address a bigger part of the market where volumes are high.” Yamaha sold 520,000 bikes in the Indian market and is now looking forward to increase the number by two million by the year 2016.

At present, the company sells the Crux 110 and YBR125 in the Indian market which is priced at £400 and £500 respectively . Suzuki added, “Just about one in every 25 people in India owns a two-wheeler. There is a huge scope to attract more buyers with a fuel-efficient product that is priced reasonably.”

With the new model, it will become the lowest priced model globally. Earlier, auto giant Tata made a difference by introducing the one lakh car Nano for the middleclass customers. So now the other car makers are also trying to introduce the cheapest possible products in the country.