Zigwheels Home

Yamaha to transfer its sales and marketing divisions

by ET Posted on 18 Feb 20135,766 Views Comments

India Yamaha Motor to hive off sales and marketing function into new unit to reduce costs and break into profits

 

Yamaha SZ

 

 

India Yamaha Motor, the Indian arm of Japanese bike maker Yamaha, has decided to hive off its sales and marketing functions into a separate entity in a bid to reduce costs and break into profits. 

 

With the expanding manufacturing footprint, product portfolio and the sales outlets, the top management felt, it makes sense to have separate entities managing functions of manufacturing, sales and R&D. 

 

ET learns, the sales entity, to be called Yamaha Motor India Sales, will be headed by Masaki Asano as its managing director. India Yamaha Motor will manage the manufacturing function and the new R&D centre, will be managed by a separate entity, details of which are not known as yet. 

 

Roy Kurian, national business head sales at Yamaha Motor India Sales confirmed the development. "This will help us in having clear focus. We just have to sell and the manufacturing operation will be managed by the existing entity," he told ET. 

 

He said that apart from creating a clear focus on various functions, the company is looking at reducing cost and boosting its margins through this move. "At the existing price points, we are not getting the margin that we think we should get, but this is all going to change. There are whole host of cost-cutting initiatives being undertaken to boost margins," Kurian said. 

 

"This move will definitely improve the profitability. We are hopeful of improving our margins by 50-60 % in the coming years," he added. 

 

Yamaha's sales have been rising, but it has been incurring losses year after year. The accumulated losses for the company stood at Rs.1,358 crore at the end of 2011. 

 

In 2011, it reported losses of Rs. 241.66 crore, down from Rs.632.31 crore loss in 2010. Through its organisational restructuring the company is aiming to break into profits in 2013. 

 

The manufacturing company will focus on improving operational efficiency and reducing input costs while sales company will focus on building brand and selling bikes. 

 

People close to the development say India Yamaha Motor is aiming to reduce cost by at least 5-10 % by negotiating with vendors for lower price and using common parts across products among other measures. 

 

Post Your Comment

Do you like this story?

Sign up for our customized BIKER newsletter today.

Ducati 1299 Panigale to debut at 2014 EICMA

by Arun Mohan Nadar

The Ducati 1299 Panigale will replace the 1199...

2015 Triumph Street Triple RX caught testing

by Arun Mohan Nadar

The Triumph Street Triple RX will most likely be...

2015 BMW S1000RR to debut at INTERMOT

by Arun Mohan Nadar

BMW Motorrad has confirmed that the 2015 version...


 
 
FEATURED SLIDESHOWS

Yamaha Fazer FI KTM RC 390 Vespa Elegante showcased in India before launch 2014 Yamaha Fazer FI Version 2.0 Suzuki Gixxer 155 India First Ride 2014 Hero Karizma R vs Bajaj Pulsar 220 Hero Xtreme vs Yamaha FZ-S v2.0 vs Honda CB Trigger A souped-up Royal Enfield Continental GT at Bonneville KTM RC 390

 
TOP VIDEOS

Kawasaki Ninja 1000: ZigWheels Video Review

The Kawasaki Ninja 1000 has the heart of a sports bike and the essence of a tourer. We spend a day...

KTM RC 390: Action Video

The above video shows the soon to be launched KTM RC 390 in action at the race track and on the...

 

Read Next Story