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Yamaha to focus on volume sales in India through 2018

Team OD  /
15 Dec 2015 19:01:07 IST

Yamaha Motor Company has just released itsmedium term business plan that details what the company will do from 2016 to 2018. Yamaha says the plan builds on the current term(2013-2015). The overall target is to grow from the 2012's 18.6 billion yen consolidated operating income to 180 billion yen by 2018, with consolidated operating income margin going up from 1.5 per cent (2012) to 9 per cent (2018). But as great as that sounds for Yamaha, the plan has a specific footnote for India that involves interesting news for enthusiasts and Yamaha fans.

Yamaha Saluto (20)

Amongst the key business strategies, Yamaha says the plan for India is as follows

"Expanding product lineup, achieving stable profit through volume scale.

Launching emerging market strategy models for mass market areas, developing regional sales networks and strengthening customer contact points."

Let's interpret that. Yamaha will work towards expanding both the effectiveness and the reach of its dealership networks over the next few years.

This is not hard to understand. "Volume scale" requires manufacturers to reach customers and in a big country like India, that can be a substantial challenge, especially when it comes to smaller displacement commuter motorcycles.

The clue to what kind of new models to expect lies in the "emerging market strategy models". That is interesting. If the need is "volume scale" then some of these new models definitely have to be 100-125cc commuters or scooters.

But Yamaha isalso known to have some plans for the premium segment including, "a surprise at the Auto Expo."

Let us know what you think we can expect from Yamaha in the comments below.

Yamaha sales target


  
Targets
2012 Results
Consolidated net sales 1,207.70 billion yen
Consolidated operating income 18.6 billion yen
Consolidated operating income margin 1.50%
Equity ratio 32.00%
ROE (3-year average) 6.50%
Cost reduction (3 years) 34 billion yen
Foreign exchange ($/) 80/103
  
Targets
2015 Forecast
Consolidated net sales 1,650.00 billion yen
Consolidated operating income 125 billion yen
Consolidated operating income margin 7.60%
Equity ratio 38.50%
ROE (3-year average) 13.80%
Cost reduction (3 years) 42.5 billion yen
Foreign exchange ($/) 119/134
  
Targets
2018 Goals
Consolidated net sales 2,000.00 billion yen
Consolidated operating income 180 billion yen
Consolidated operating income margin 9.00%
Equity ratio 42.50%
ROE (3-year average) 15.00%
Cost reduction (3 years) 60 billion yen
Foreign exchange ($/) 115/130
  

Yamaha sales target


  
Targets
2012 Results
Consolidated net sales 1,207.70 billion yen
Consolidated operating income 18.6 billion yen
Consolidated operating income margin 1.50%
Equity ratio 32.00%
ROE (3-year average) 6.50%
Cost reduction (3 years) 34 billion yen
Foreign exchange ($/) 80/103
  
Targets
2015 Forecast
Consolidated net sales 1,650.00 billion yen
Consolidated operating income 125 billion yen
Consolidated operating income margin 7.60%
Equity ratio 38.50%
ROE (3-year average) 13.80%
Cost reduction (3 years) 42.5 billion yen
Foreign exchange ($/) 119/134
  
Targets
2018 Goals
Consolidated net sales 2,000.00 billion yen
Consolidated operating income 180 billion yen
Consolidated operating income margin 9.00%
Equity ratio 42.50%
ROE (3-year average) 15.00%
Cost reduction (3 years) 60 billion yen
Foreign exchange ($/) 115/130
  

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