Yamaha Motor Seeking Higher Profits Across South East Asia

Yamaha Motor
Yamaha Motor Co. aims to increase its operating profit margin on motorbike sales in Southeast Asia to 10% by the end of 2018, up two percentage points from now.

Southeast Asia accounts for about 60% of the Yamaha Motor Co’s global motorbike sales. Sales of the Yamaha Motorbikes decreased 22% in Indonesia in 2015 from the prior year, falling to 1.85 million units as a result of the country’s economic slump. Indonesia still accounted for 35% of Yamaha Motor’s motorbike sales worldwide. In addition, by increasing efficiency in production and development, the manufacturer aims to make up for Indonesia’s market decline.

At present, only 40% of Yamaha Motor’s lineup in Indonesia uses the same platform. Finally, the company looks to increase that percentage to 60% by the end of 2018.
“By developing a wide variety of trendy models from a single platform, we can better respond to the needs of a variety of customers,” said President Hiroyuki Yanagi. He stressed the dual effect of cutting costs and improving product competitiveness.

The motorcycle maker aims to lift global sales as high as 1.3 trillion yen ($13 billion) and bring operating profit to 74 billion yen by the end of 2018, according to a medium-term management plan. The company will also focus on strengthening its presence in India, Brazil and China. But for the time being, the Southeast Asian market will remain the core earnings source. The markets of Vietnam, the Philippines and Thailand are all growing. The company seeks to improve its operating efficiency in Indonesia for better profitability in Southeast Asia as a whole.

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