Yamaha Motors, one of the leading two-wheeler companies in the Indian market estimates a major hit due to the coronavirus pandemic. According to the company, they estimate sales to be lowest in a decade in 2020 because of drastic fall in consumer buying sentiment due to the COVID-19 pandemic.
The Japanese subsidiary has stated that they witnessed a fall of over 36 percent in its domestic sales in January-August this year.
Yamaha Motor India Sales (YMIS) Senior Vice President Ravinder Singh during an interview with PTI said, “Yamaha expects demand to gradually grow, although the total sales volume for the year 2020 will remain the lowest in a decade.”
The company also thinks that the upcoming festive season, mid-August onwards, will boost the sale as it would improve the market sentiment. They also say that the pandemic is likely to reduce the practice of shared transportation as people will prioritize social distancing and personal hygiene. It is time for businesses and companies to re-look at their strategies for the future, due to the growing impact that the coronavirus pandemic has laid on the market, according to Ravinder Singh.
He also stated that the company is focussing on the usage of digital platforms by the dealers to reach the customers. He said, “The change in consumer journey will fuel new business models and Yamaha will also need to establish new processes to ensure growth.”
He also stated that due to the coronavirus pandemic, the company has witnessed a huge change in terms of consumer buying habits and behaviors in terms of usage of transportation means.
According to his opinion, “It’s likely to moderate the trends of shared mobility as people will prioritize social distancing and personal hygiene. This will effectively build higher preferences for affordable personal mobility, which could boost sales for auto manufacturers.”
According to the company records, YMIS sold 2,88,942 units of two-wheelers from January till August of this year. Compared to 4,54,617 units sold the previous year at the same time. This shows a decline of 36.44 percent in sales.
However, for the last two months, the sales have picked up. The company says they have witnessed a 4.32 percent rise in July and 14.8 percent rise in August as against the same period of last year.
During the interview, Singh also said, “Right now, Yamaha’s major concern is to bring back shape to the business and ensure that the customers also return to the dealerships,” when asked about the company’s strategy to bring the customers back into purchasing mode.
He also said that now the challenge is to show strength and endurance to grow the business while he also commented that Yamaha will gradually unfold its new strategies to ‘enhance excitement’ in the market. He said that now, the company will strongly focus on building the company’s new campaign ‘The Call of the Blue’, which will promote the global experience of Yamaha.
He added, “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 to personal safety.”
Yamaha also looks forward to launching 15 ‘Blue Square’ showrooms across the country in 2020 focussing on the sport and style of the Yamaha models, according to comments of Singh. He added, “By 2021, we will be opening approximately 100 Blue Square outlets across India. Our sole objective is to provide our customers with a premium experience through these exclusive showrooms, while they spend their time buying premium Yamaha products and accessories.”
The company also focuses on advertising to lure in customers. They might also restructure the advertising strategy, according to the new situation. Singh also said, “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.” (PTI)