Yamaha plans to double its motorcycle profit margin

Yamaha Motor Co. CEO Hiroyuki Yanagi has said the OEM plans to double the operating profit margin of its motorcycle business by the end of 2018, The Japan Times reported.

Under Yamaha’s mid-term plan, motorcycle profit margin would reach 10 percent by the end of 2018. In January 2013, Yamaha announced its goal to obtain 7.5 percent profit margin in motorcycle in 2017.

The new goals come as Yamaha expects production costs to drop 20 percent by using more shared components. Yanagi also said he anticipates that the motorcycle business in developed markets will return to profit this year after seeing a deficit over the past eight years.

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