YAMAHA TO EXPAND MOTORCYCLE OPS
August 2 2005.
With the European and North American markets almost saturated, Yamaha Motor Co. plans to bolster its mainline motorcycle business in the emerging markets of Brazil, Russia, India and China.
The firm plans to establish a sales company in Russia next January. Although Yamaha sold just 2,000 motorcycles in that country last year, the brand name is well-known because of strong demand for its outboard motors and snowmobiles. By 2007, Yamaha hopes to double or triple its motorcycles sales there from the roughly 5 billion yen in 2004.
Yamaha plans to establish a sales network in India, where it now relies on local sales agents. It will open its first directly run Indian store in Delhi at the end of August, followed by similar outlets in Mumbai, Chennai and Bangalore in 2006.
In Brazil, the company plans to spend about 900 million yen to boost the annual output capacity of its Manaus plant from 200,000 units to 250,000 within three years. Yamaha has also earmarked about 6 billion yen for new-model development and cost-cutting over three years, and is considering building another Manaus plant in 2007 or later.
In China, Yamaha unified last year the sales functions in Chongqing and Zhuzhou, where it has production sites. It also established a sales company in Shanghai to handle all of its Chinese-made products.
Yamaha projects that its total motorcycle sales in the four countries will jump 60% from the 2004 level to more than 1 million units in 2007.

Source: The Nihon Keizai Shimbun