Yamaha Thailand looks to JV for motorcycle output in Burma
Access to distribution network, trade expansion seen in local partners
Yamaha Motor Thailand plans to form a joint venture with a group of investors in Burma to produce its motorcycles as the neighbouring country has started to open its doors wider for overseas investment since last year.
The Thai unit is in talks with its parent company in Japan over details of the plan and its business direction. Forming a joint venture with Burmese partners would help secure its business expansion. Also, they would know the market outlook and also have access to distribution networks.
Yamaha Thailand will be in |charge of looking after its marketing strategy.
Chief operating officer Praphan Phornthanavarsit said the company expected to produce 10,000 motorcycles in the first year of operation in Burma. However, in the early stage the firm will not invest much as it needs time to study the market.
He said the market was big and its potential very high.
Demand for motorcycles in Burma has risen annually, but while dealers exist, the market has not been open for the most part, and prolonged political troubles have also clouded the business outlook.
Within the Asean market, the parent company has authorised Yamaha Thailand to take care of Cambodia and Laos. Its sales in Cambodia have reached 15,000-20,000 units a year, and 10,000 units annually in Laos. In the future, the firm expects Burma will offer the highest potential.
Yamaha has deemed 2012 "the year of aggressive growth", with new products and an expanded network. The aim is to increase its market share in Thailand to 30 per cent this year and to 35 per cent next year.
This year’s marketing budget is Bt1.5 billion. Yamaha expects to have 653 dealers in Thailand this year, 718 by next year and 778 by 2014.
Worldwide, 60 million motorcycles were sold last year. Asia showed very high growth. By 2020, Yamaha Motor Co in Japan projects total global sales to exceed 80 million units. Given this potential, Yamaha should be able to sell 10 million bikes worldwide by 2015, an increase of 150 per cent.
Thailand is one of Yamaha’s most important markets.
