With just five months to go for the end of year, Yamaha has downgraded its targets by 11.8 per cent. This step was taken on account of the drop in demand in several global markets as well as the strengthening of Yen.
In the first half of this year, Yamaha reported a 6.1 per cent drop in income from net sales and a 10.9 per cent drop in operating income. Taking this into consideration, Yamaha has now lowered its forecast for this year. The company is now targeting to achieve full-year net sales of 1,500 billion yen, down 11.8 per cent, and operation income of 105 billion yen, down 12.5 per cent. The depreciation of Indonesian rupiah, Brazilian Real and other currencies has also played a role in influencing Yamaha’s decision. The silver lining was the new e-bike segment of electrically power assisted bicycles, which experienced a significant jump in Japan as well as Europe.
Yamaha’s Indian arm has been performing quite well since the past few months, with the company registering a 14 per cent jump in sales in July. However, the major chunk of these volumes is generated by mass-market motorcycles and the sale of premium bikes is barely a speck when compared to global markets. While these mass market motorcycles are useful in making the sales graphs look favourable, they aren’t as profitable as premium motorcycles. Apart from India, Vietnam, Philippines and Taiwan have also been playing an instrumental role in Yamaha’s sustenance.
