At an August 4 financial meeting, Yamaha president Hiroyuki Yanagi said of the company’s forecast for the Indonesian motorcycle market, “This may be wishful thinking, but we’re hoping to pull things around at the end of this year, or the beginning of next year at the latest.”
The drop in demand that started last year in Indonesia, which is the biggest motorcycle market in Southeast Asia, shows no sign of letting up. The first half of this year saw a year-over-year decrease of 25% at 3,170,000, with Yamaha sending out 31% less than last year at 920,000 units.
Yanagi gave three reasons for the slump. They were the government’s slow response to economic conditions, decreasing value of the currency, and bearish marketing conditions for primary products. He said that because of the government finally taking action on the economy, June and July saw an abatement of this negative trend. He says that things are beginning to look favorable for a recovery in the second half of the year.
(Translated by Greg Scott)