Motorcycle sales in emerging markets drive Yamaha’s record half-year numbers

Yamaha Motor Co has announced consolidated business results for the first half of 2017. Net sales were 828.1 billion yen, an increase of 49.7 billion yen (6.4%) compared with the same period the previous fiscal year.

Operating income was 82.2 billion yen, an increase of 16.8 billion yen (25.7%), ordinary income was 83.5 billion yen, an increase of 28.2 billion yen (51.1%), and net income 60.8 billion yen, an increase of 28.4 billion yen (87.5%). Each of these income figures are the company's highest ever.

In the emerging markets motorcycle business segment, net sales rose as a result of increased unit sales, while operating income increased significantly from profitability improvements in the ASEAN region and through structural reform in Brazil.

In India, Yamaha is seeing an uptick in demand. In the April-June 2017 period, it has sold 198,728 units, up 2.49 percent year on year. The company currently has a 4.06% share of the overall two-wheeler market; 6.64% in scooters and 2.92% in motorcycles.

In the developed markets business, net sales increased compared with the same period the previous fiscal year thanks to increased sales of motorcycles, marine, industrial machinery, and electrically power assisted bicycles. 

Net sales of motorcycles were 509.2 billion yen (a year-on-year increase of 31.7 billion yen or 6.6%), and operating income was 33.8 billion yen (an increase of 15.7 billion yen or 86.8%).
Unit sales in emerging markets such as Vietnam, the Philippines, Thailand, and Taiwan increased, and despite decreasing in Indonesia due to the market slump there, the unit sales figure increased overall. According to Yamaha, net sales increased and operating income rose significantly due to the effects of product mix improvements and cost reductions.

In developed markets, sales in Europe were on a similar level to the previous year despite the launch of new products such as the MAX series, due to the impact of environmental regulations. In North America, sales decreased due to weakening demand, leading to an overall decrease in sales.