EXCLUSIVE: Yamaha’s Exit from 110cc Scooter Segment; Has it Worked?

We take a look at Yamaha scooter sales for the last three years and try and understand if this sudden move to offer only 125s worked for them…?

Along with the entry level motorcycles, Yamaha exited the 110cc scooter segment last year and announced that it will focus only on its new 125cc scooters. It, then, launched two scooters – Fascino 125 and Ray ZR (along with its variant Ray ZR Street Rally). At the same time, the older Fascino 110 and Ray range was discontinued. Due to its low sales, Cygnus Alpha was completely withdrawn from the market.

So, how has it been for Yamaha? Has the decision worked for them? Let us take a look at Yamaha’s scooter sales for the last three years…

Yamaha Scooter Sales – FY19 to FY21

YearSalesGrowth
2018-193,64,879 units
2019-202,85,996 units-22 percent
2020-212,39,144 units-16 percent

Overall 90-125cc Scooter Sales

YearSalesGrowth
2018-1965,25,179 units
2019-2054,57,659 units-16 percent
2020-2143,73,431 units-20 percent

So, if we analyze these two tables, we get to know the following details..

Yamaha sold almost 80,000 lesser scooters in the financial year 2019-20. This may have not gone down well with the management and could probably be the reason why the company took the decision to let go the 110cc segment and focus on the 125cc scooters – which was not as densely populated that time.

Yamaha promised a much better performance for its 125cc scooters

Last fiscal Yamaha sold approximately 47,000 lesser scooters than the preceding year. In comparison, this segment fell by almost 20 percent during this period due to the COVID-19 led disruptions. So, if we look at it that way, Yamaha was slightly better off in the segment.

If we talk about its rivals, only Hero MotoCorp managed to sell higher scooters in FY21 as compared to FY20 sales. All others were in the negative. This included Honda, TVS, Suzuki and Piaggio.

yamaha scooter sales
The 110cc Fascino, Ray range and Cygnus were discontinued from the market…

It must also be noted that the 125cc scooters cost more than the 110cc versions. Which means that Yamaha would have earned higher revenue from them which would have offset the loss to a great extent.

FZ vs R15/MT15 – How Yamaha’s Models Stack Up: FY21 Sales

It has been a year of uncertainties and frankly, no decision can be judged clearly. However, the following two pointers suggest that Yamaha’s decision to move to the 125cc scooter segment, kind of, worked for them…

  • It earned higher revenue from its (lesser) scooter sales last fiscal. Had it continued with its older 110cc versions (and let us consider that they registered similar sales), revenues would have been down by a fairly big percentage.
  • When the overall segment fell by 20 percent Yamaha fared slightly better. Again a minor positive.
The new Fascino 125 carries forward the similar curvaceous design of the older Fascino…

OPINION: Why FZ-X & Why NOT the R15-Based XSR155 for India…?

Though it doesn’t look like it but if this year is relatively disruption free, we will get to know which way will the tide move. Yamaha may also want to build up on its decision by offering more scooters in this (or the 150cc) segment. Let us wait and watch…

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