Yamaha Motor India Sales fell by over 36% in its domestic sales in January-August this year and expects to witness a 10 year low in 2020.
Yamaha Motor, the Japanese parent of their subsidiary Yamaha Motor India Sales, on Sunday said that the estimated sales in the Indian market is to be the lowest in this decade. The company attributes this drastic fall to an average consumer’s buying sentiment in the times of Covid-19.
Yamaha Motor India Sales (YMIS) senior vice-president Ravinder Singh, in an interview with PTI, opined that the pandemic is likely to change the practice of shared transport as social distancing and personal hygiene are factors that have come into play.
“Yamaha expects demand to gradually grow, although the total sales volume for the year 2020 will remain the lowest in a decade,” he said.
Singh further speculated improved sales numbers by mid-August of 2022, the usual festive season.
“While the next few months will be tough, the market sentiment is estimated to improve by mid-August onwards during festive seasons. The growing impact of the pandemic has made it important for businesses and companies to re-look at their strategies for the future,” he said.
Yamaha has been establishing new processes keeping in mind their dependence on digital platforms for growth.
“It’s likely to moderate the trends of shared mobility as people will prioritise social distancing and personal hygiene. This will effectively build higher preferences for affordable personal mobility, which could boost sales for auto manufacturers,” Singh added.
Ravinder Singh used a research by Kantar as a reference to elaborate on his point that asserts that shared mobility will take a 55% hit and public transport will not be a part of a popular picture.
Numbers show a significant decline in YMIS’s sales of two-wheelers, as the company sold 4,54,617 units two years ago compared to 2,88,942 in the January-August period this time.
However, amid the 36% drop, the company has witnessed a 4.32% rise in July and 14.8% in August as compared to the same period of 2019.
“Right now, Yamaha’s major concern is to bring back shape to the business and ensure that the customers also return to the dealerships. The new normal calls for major strategic transformation in retail planning and the company is currently driving the whole retail scenario by digital initiatives as far as possible,” the senior YMIS official said.
He also informed that the digital platforms will assist the company to make a complete new campaign this year called ‘The Call of the Blue’, promoting the global experience of Yamaha.
Singh said, “Automobile companies normally witness an upward trend during the regional festive season, especially with Durga Puja, Diwali till Christmas in Eastern India. Also, the demand for two-wheelers may increase owing to changes in travel preferences due personal safety.”
Along with their digital efforts, YMIS also plans to launcg 15 ”Blue Square” showrooms across the country in 2020 focussing on sport and style of the Yamaha models.
“By 2021, we will be opening approximately 100 Blue Square outlets across India. Our sole objective is to provide our customers a premium experience through these exclusive showrooms, while they spend their time to buy premium Yamaha products and accessories.”
“For the auto category, the second half of the year is an important business period with many tactical campaigns. Yamaha will continue advertising with different media mix and strategy while addressing key challenges and objectives,” he added.
