March 10 2005.
Sanyang Industry Co., a motorcycle manufacturer in Taiwan, intends to expand sales in the Japanese market and introduce low-priced scooters made in Vietnam as early as this year.
The firm has 250 sales agents in Japan and plans to expand its sales network there to 300 to 400 outlets within three years. It also seeks to increase sales from 4,000 units in 2004 to more than 20,000 and strengthen its brand power in large scooters while offering competitively priced small ones.
The scooters will be imported by M'z & Co., the exclusive agent in Japan. Sanyang has production facilities in Ho Chi Minh City and Hanoi, and M'z plans to initially import 300 to 500 scooters from the Ho Chi Minh City plant.
The Vietnamese scooters range from 125 to 180cc in engine capacity and their prices can be set below those of similar Taiwanese scooters. Sanyang entered the Japanese market in 2002 and started selling low-priced 50 to 180cc scooters made in Taiwan, but the introduction of Suzuki's 50cc Choinori eroded its relative price advantage.
Sanyang intends to boost sales from 450 million yen for the year ended March 31, 2004, to 2 billion yen in three years.
Source: The Nikkei Business Daily