India Yamaha Motor’s sales unit will be separated; to be called Yamaha Motor India Sales

India Yamaha Motors is planning to transfer the sales and marketing unit from the main company to a completely different entity in a bid to reduce costs and break into profits.

"This will help us in having clear focus. We just have to sell and the manufacturing operation will be managed by the existing entity. 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,” said Roy Kurian, national business head sale, Yamaha Motor India.

The sales unit will be called as Yamaha Motor India Sales and will be headed by Masaki Asano as its managing director. The existing company entity will manage the manufacturing arm whereas the R&D division will be managed by a new unit which is yet to be named.

With this new strategy, the company is hoping to increase their profit margins by fifty-sixty per cent in the next few years. The company is also planning to reduce its operating costs by at least five-ten percent by using common parts among their product portfolio.