Not long after Honda launched its ultra low-cost Dream Yuga in India, Yamaha announced it is considering a new own model that will be nearly 40% cheaper.

The 109cc Dream Yuga is Honda‘s latest weapon in the battle for India’s 13-million unit per year motorcycle market. Priced at 44,642 Indian rupees (US$806), the Dream Yuga is the most affordable Honda model available in India.

Yamaha already offers a model at a lower price, the 106cc Crux (pictured above) at 38,365 rupees (US$693) but plans are underway for an even cheaper model priced under 27,500 rupees (US$497). Hiroyuki Suzuki, chief executive officer and managing director of India Yamaha Motor tells the Hindustan Times the company plans to offer the new model in India and Africa.“Our product benchmark right now (on cost) is the YBR 110 and Crux, but we would like to develop a bike in the low-cost segment for markets like Africa,” says Suzuki. “The target is to make a bike that will cost $50. I think such a bike will have a lot of demand in Africa as well as in India.”

At 27,500 rupees, this new model would be the least expensive motorcycle in India, lower than the current benchmark, the 36,300 rupee (US$656) Hero CD Dawn.

[Source: Hindustan Times]

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