Brazil

INDUSTRY PROFILE

Motorcycles in
Brazil

Reference Code: 0076-0403
Publication Date: September 2010

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Brazil - Motorcycles 0076 - 0403 - 2009

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
Market value
The Brazilian motorcycles market shrank by 22.2% in 2009 to reach a value of $6,246.6 million.
Market value forecast
In 2014, the Brazilian motorcycles market is forecast to have a value of $12,825 million, an increase of
105.3% since 2009.
Market volume
The Brazilian motorcycles market shrank by 14.7% in 2009 to reach a volume of 1,642 thousand units.
Market volume forecast
In 2014, the Brazilian motorcycles market is forecast to have a volume of 2,974 thousand units, an
increase of 81.1% since 2009.
Market segmentation I
Motorcycles is the largest segment of the motorcycles market in Brazil, accounting for 98% of the
market's total volume.
Market segmentation II
Brazil accounts for 29.4% of the Americas motorcycles market volume.
Market share
Honda is the leading player in the Brazilian motorcycles market, generating a 71.6% share of the market's
volume.
Market rivalry
Recent market decline will tend to discourage new entrants to the market, but intensify rivalry between the
incumbents, most of which are large multinationals.



CONTENTS

TABLE OF CONTENTS
EXECUTIVE SUMMARY 2

MARKET OVERVIEW 7

Market definition 7

Research highlights 8

Market analysis 9

MARKET VALUE 10

MARKET VOLUME 11

MARKET SEGMENTATION I 12

MARKET SEGMENTATION II 13

MARKET SHARE 14

COMPETITIVE LANDSCAPE 15

LEADING COMPANIES 18

Dafra Motos 18

Honda Motor Co., Ltd. 19

Suzuki Motor Corporation 23

Yamaha Motor Co., Ltd. 27

MARKET FORECASTS 31

Market value forecast 31

Market volume forecast 32

MACROECONOMIC INDICATORS 33

APPENDIX 35

Methodology 35

Industry associations 36

Related Datamonitor research 36

Disclaimer 37

ABOUT DATAMONITOR 38

Premium Reports 38

Summary Reports 38



CONTENTS

Datamonitor consulting 38



CONTENTS

LIST OF TABLES
Table 1: Brazil motorcycles market value: $ million, 2005–09 10
Table 2: Brazil motorcycles market volume: thousand units, 2005–09 11

Table 3: Brazil motorcycles market segmentation I:% share, by volume, 2009 12
Table 4: Brazil motorcycles market segmentation II: % share, by volume, 2009 13
Table 5: Brazil motorcycles market share: % share, by volume, 2009 14

Table 6: Dafra Motos: key facts 18
Table 7: Honda Motor Co., Ltd.: key facts 19
Table 8: Honda Motor Co., Ltd.: key financials ($) 21

Table 9: Honda Motor Co., Ltd.: key financials (¥) 21
Table 10: Honda Motor Co., Ltd.: key financial ratios 21
Table 11: Suzuki Motor Corporation: key facts 23
Table 12: Suzuki Motor Corporation: key financials ($) 25
Table 13: Suzuki Motor Corporation: key financials (¥) 25
Table 14: Suzuki Motor Corporation: key financial ratios 25
Table 15: Yamaha Motor Co., Ltd.: key facts 27
Table 16: Yamaha Motor Co., Ltd.: key financials ($) 28
Table 17: Yamaha Motor Co., Ltd.: key financials (¥) 28
Table 18: Yamaha Motor Co., Ltd.: key financial ratios 29
Table 19: Brazil motorcycles market value forecast: $ million, 2009–14 31
Table 20: Brazil motorcycles market volume forecast: thousand units, 2009–14 32

Table 21: Brazil size of population (million), 2005–09 33
Table 22: Brazil GDP (constant 2000 prices, $ billion), 2005–09 33
Table 23: Brazil GDP (current prices, $ billion), 2005–09 33

Table 24: Brazil inflation, 2005–09 34
Table 25: Brazil consumer price index (absolute), 2005–09 34
Table 26: Brazil exchange rate, 2005–09 34



CONTENTS

LIST OF FIGURES
Figure 1: Brazil motorcycles market value: $ million, 2005–09 10
Figure 2: Brazil motorcycles market volume: thousand units, 2005–09 11

Figure 3: Brazil motorcycles market segmentation I:% share, by volume, 2009 12
Figure 4: Brazil motorcycles market segmentation II: % share, by volume, 2009 13
Figure 5: Brazil motorcycles market share: % share, by volume, 2009 14

Figure 6: Honda Motor Co., Ltd.: revenues & profitability 22
Figure 7: Honda Motor Co., Ltd.: assets & liabilities 22
Figure 8: Suzuki Motor Corporation: revenues & profitability 26

Figure 9: Suzuki Motor Corporation: assets & liabilities 26
Figure 10: Yamaha Motor Co., Ltd.: revenues & profitability 29
Figure 11: Yamaha Motor Co., Ltd.: assets & liabilities 30
Figure 12: Brazil motorcycles market value forecast: $ million, 2009–14 31
Figure 13: Brazil motorcycles market volume forecast: thousand units, 2009–14 32



MARKET OVERVIEW

MARKET OVERVIEW
Market definition
The motorcycles market consists of all classes of on- and off-road motorcycles including scooters and
mopeds. Mopeds are powered two-wheeler vehicles with engine capacity of less than 50 cc, generally
also equipped for non-motorized propulsion and with restricted maximum speed. For the purposes of this
profile, all powered two-wheelers other than mopeds are classed as 'motorcycles'. (The term 'scooter'
refers to a two-wheeler of any capacity that has its engine as part of the rear suspension, and/or has a
step-through chassis, thus depending on its engine capacity a scooter may fall into either moped or
motorcycle category although for the purposes of this profile it has been included in the motorcycle
category). Volumes reflect the number of new motorcycles sold each year. The market value is assessed
at manufacturers' list price. All currency conversions are carried out at constant average annual 2009
exchange rates
For the purposes of this report, the Americas consists of North America and South America.
North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.



MARKET OVERVIEW

Research highlights
The Brazilian motorcycles market had total revenue of $6.2 billion in 2009, representing a compound
annual growth rate (CAGR) of 16.8% for the period spanning 2005-2009.
Market consumption volumes increased with a CAGR of 12.3% between 2005-2009, to reach a total of
1.6 million units in 2009.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 15.5% for the five-
year period 2009-2014, which is expected to drive the market to a value of $12.8 billion by the end of
2014.



MARKET OVERVIEW

Market analysis
After a period of strong growth, steep decline occurred in both values and volumes of the Brazilian
motorcycles market. Recovery is expected in the coming year and the market set to post double digit
growth again towards 2014.

The Brazilian motorcycles market had total revenue of $6.2 billion in 2009, representing a compound
annual growth rate (CAGR) of 16.8% for the period spanning 2005-2009. In comparison, the US and
Canadian markets declined with compound annual rates of change (CARCs) of -4.7% and -4%
respectively, over the same period, to reach respective values of $8.1 billion and $692.7 million in 2009.
Market consumption volumes increased with a CAGR of 12.3% between 2005-2009, to reach a total of
1.6 million units in 2009. The market's volume is expected to rise to 3 million units by the end of 2014,
representing a CAGR of 12.6% for the 2009-2014 period.
Motorcycles sales had the highest volume in the Brazilian motorcycles market in 2009, with total sales of
1.6 million units, equivalent to 98% of the market's overall volume. In comparison, sales of mopeds had a
volume of 32.8 thousand units in 2009, equating to 2% of the market total.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 15.5% for the five-
year period 2009-2014, which is expected to drive the market to a value of $12.8 billion by the end of
2014. Comparatively, the US and Canadian markets will grow with CAGRs of 3.4% and 1.1%
respectively, over the same period, to reach respective values of $9.6 billion and $729.9 million in 2014.



MARKET VALUE

MARKET VALUE
The Brazilian motorcycles market shrank by 22.2% in 2009 to reach a value of $6,246.6 million.
The compound annual growth rate of the market in the period 2005–09 was 16.8%.

Table 1: Brazil motorcycles market value: $ million, 2005–09

Year $ million BRL million € million % Growth
2005 3,357.4 6,743.2 2,414.5
2006 4,539.3 9,117.1 3,264.5 35.2%
2007 6,024.3 12,099.5 4,332.4 32.7%
2008 8,025.8 16,119.7 5,771.9 33.2%
2009 6,246.6 12,546.1 4,492.3 (22.2%)

CAGR: 2005–09 16.8%

Source: Datamonitor DATAMONITOR

Figure 1: Brazil motorcycles market value: $ million, 2005–09




MARKET VOLUME

MARKET VOLUME
The Brazilian motorcycles market shrank by 14.7% in 2009 to reach a volume of 1,642 thousand units.
The compound annual growth rate of the market in the period 2005–09 was 12.3%.

Table 2: Brazil motorcycles market volume: thousand units, 2005–09

Year thousand units % Growth
2005 1,032.3
2006 1,307.5 26.7%
2007 1,694.5 29.6%
2008 1,925.6 13.6%
2009 1,642.0 (14.7%)

CAGR: 2005–09 12.3%


Figure 2: Brazil motorcycles market volume: thousand units, 2005–09




MARKET SEGMENTATION I

MARKET SEGMENTATION I
Motorcycles is the largest segment of the motorcycles market in Brazil, accounting for 98% of the
market's total volume.
The mopeds segment accounts for the remaining 2% of the market.

Table 3: Brazil motorcycles market segmentation I:% share, by volume, 2009

Category % Share
Motorcycles 98.0%
Mopeds 2.0%

Total 100%


Figure 3: Brazil motorcycles market segmentation I:% share, by volume, 2009




MARKET SEGMENTATION II

MARKET SEGMENTATION II
Brazil accounts for 29.4% of the Americas motorcycles market volume.
The United States accounts for a further 38.1% of the Americas market.

Table 4: Brazil motorcycles market segmentation II: % share, by volume, 2009

Category % Share
United States 38.1%
Brazil 29.4%
Mexico 6.2%
Canada 3.3%
Rest of the Americas 23.1%

Total 100%


Figure 4: Brazil motorcycles market segmentation II: % share, by volume, 2009




MARKET SHARE

MARKET SHARE
Honda is the leading player in the Brazilian motorcycles market, generating a 71.6% share of the market's
volume.
Yamaha Motor Co Ltd accounts for a further 11.9% of the market.

Table 5: Brazil motorcycles market share: % share, by volume, 2009

Company % Share
Honda 71.6%
Yamaha Motor Co Ltd 11.9%
Suzuki Motor Corporation 5.0%
Dafra Motos 4.0%
Other 7.5%

Total 100%


Figure 5: Brazil motorcycles market share: % share, by volume, 2009




COMPETITIVE LANDSCAPE

The motorcycles market will be analyzed taking motorcycle manufacturers as players. The key buyers will
be taken as motorcycle dealers, and manufacturers of raw materials and components as the key
suppliers.
Recent market decline will tend to discourage new entrants to the market, but intensify rivalry between the
incumbents, most of which are large multinationals.
Buyer power is weakened by high level of product differentiation and customer loyalty with respect to
dominating brands. Amongst the suppliers there are providers of commodity items such as metals, and
their power is boosted due to their large size, consolidation of the industry and the fact that motorcycle
manufacturers account for only a small fracture of their revenues. For new entrants to the market, setting
up a production facility involves large capital outlay thus constituting significant entry barrier and high
fixed cost. Furthermore the global tightening of emission standards is ramping up costs further as
motorcycle re-designs are required. Such a trend can trigger the demand for newer, more economical
engines, involving higher costs of R&D spending. Other means of transportation constitute the main
substitutes within the market, and the threat of substitution is largely dependent upon the necessity of
motorcycle use to the end-user. Due to high population density and relatively low average income,
motorcycles and scooters may form a necessary means of transport in some regions of Brazil.
The rivalry is boosted by the presence of large, international incumbents: together the top four companies
account for approximately 93% of the market’s share by volume, meaning the market is concentrated.
Motorcycle dealers within Brazil are typically franchised to the leading manufacturers, which reduces their
independence and therefore buyer power. The leading Brazilian players Honda, Yamaha, Suzuki and
Brasil & Movimento (manufacturer of Sundown Brand), account for approximately 93% of the market with
respect to sales volume (with Honda alone holding c.a. 70%). This fact means that buyers within the
Brazilian market face a relatively high concentration of players, indicating a lower level of choice. The high
level of product differentiation weakens buyer power furthermore. It is also rather unusual for motorcycle
dealers to integrate backwards into the manufacturers’ area due to the different nature of the business.
These factors weaken the buyer power, which is assessed as moderate within the Brazilian motorcycle
market.
Key inputs for a motorcycle manufacturer include aluminum and steel sheet, bar, castings, and forgings,
and also finished components such as fuel injection systems, seats, batteries, and tires, that it is more
cost-effective to source from specialist manufacturers than to produce in-house. Amongst the providers,
there are large, multi-nationals with a strong presence within the global markets which boosts their power.
To ensure timely delivery of such materials, market players often sign contracts with their providers, thus
strengthening their power. The high importance of the raw materials to the manufacturers of motorcycles
can enhance supplier power furthermore. To ensure timely delivery of such materials, market players
often sign contracts with their providers, thus strengthening their power.




Typical suppliers are also likely to sell to a wide variety of manufacturing companies, with the motorcycles
market only a minor component of their revenues, which strengthens suppliers' position. However, with
minimal differentiation of raw materials there is little to distinguish between suppliers and manufacturers
have low switching costs thus lowering the supplier power to some extent. Overall, supplier power within
this market is moderate.
Entry to the Brazilian motorcycles market can be achieved by starting a new company, diversifying an
existing company’s operations into motorcycles manufacturing or in case of foreign companies by
beginning to export to the country. Newcomers are lured by a strong market growth promising a fair share
of revenues. However, setting up a production facilities involves large capital outlay thus constituting
significant entry barrier and high fixed costs. Additionally, leading motorcycle brands such as Honda,
Yamaha, Suzuki or local Brasil & Movimento, enjoy an exceptionally high level of brand recognition, which
is reflected in their high sales volumes and market dominance. Due to the existing strength of premium
motorcycle brands it is difficult for new entrants to introduce their products into the market. However,
sales are sensitive to price and it is possible for manufacturers to enter markets through the sale of
budget vehicles. Furthermore the global tightening of emission standards is ramping up costs further as
motorcycle re-designs are required. Such a trend can trigger the demand for newer, more economical
engines, involving higher costs of R&D spending. Overall, the threat of new entrants with respect to the
Brazilian motorcycles market is moderate.
Substitutes to the motorcycles market consist of other types of vehicles or means of transport. The threat
of substitution with respect to the motorcycles market is dependent upon the necessity of motorcycle use
to the end-user. In more developed areas motorcycles are seen as a luxury, rather than a car substitute,
for example. They are more often used for leisure purposes than for commuting and in times of economic
uncertainty demand will fall. In this case, the threat from substitutes is higher, as consumers are more
likely to continue using other vehicles or public transport, than purchase a motorcycle which may be
viewed as a luxury rather than a necessity.
In less developed regions motorcycles are often purchased as a car substitute, as they are cheaper to
buy and run. Many end-users use motorcycles as their main form of transport, due to the high population
density and relatively low average income in these countries. Motorcycles are also more suitable where a
poorly developed road infrastructure may make use of larger vehicles problematic. This decreases the
threat from substitutes as motorcycles are often a cheaper and more beneficial option for consumers.
Another alternative threatening motorcycle manufacturers is offered by used motorcycles. These may be
sold privately, or by dealers that also offer new motorcycles, and will almost always be cheaper than a
new vehicle of similar specification.
The Brazilian motorcycles market is concentrated, with top four players – namely Honda, Yamaha, Suzuki
and Dafra holding about 93% of the market share by volume. Presence of such large multi-national
companies, with exceptionally high assets, boosts the degree of rivalry; on the other hand, less players
means less competitors for a share of market’s revenues.




Additionally, fixed cost and exit barriers are of significant meaning within this market and leaving it
requires substantial divestment of highly specific assets. These factors enhance the rivalry. Most of the
players try to diversify their business models through geographical expansion or have interests in a
variety of industries manufacturing a range of goods including automobiles, watercraft, and industrial and
farming machinery. Honda group for example, except form the geographical spread, diversifies its
revenue streams by serving a number of end markets, including automobile business, motorcycle
business, power products and financial services. Such diversification reduces the dependence upon the
motorcycle market and eases rivalry therein. The Brazilian motorcycle market is currently exhibiting a
decline although a recovery to a high, double digit level of growth is expected from 2010. This provides
ample revenue growth for companies, thus reducing rivalry. There are also concerns regarding future
demand due to the aging of the customers. Overall, rivalry within the Brazilian motorcycles market is
assessed as moderate.



LEADING COMPANIES

LEADING COMPANIES
Dafra Motos

Table 6: Dafra Motos: key facts

Website: www.daframotos.com.br

Source: company website DATAMONITOR

Founded in 2007, Dafra Motos is the newest national brand of motorcycles. Dafra Motos aims to
revolutionize the market and become one of the largest motorcycle manufacturers in the country
operating under their distinctive trademark “made by Brazilians for Brazilians”.

Dafra Motos meets demand through initially focusing its production on four models designed for the tastes
of Brazilians: the Super 100 cc and the Speed 150 cc, street bikes, the Laser 150 cc scooter, Kansas 150
cc and customized motorcycles.

Dafra Motors operates in Manaus, Brazil, with the support of a strong network of technical assistants and
authorized Defra dealerships across the country.

Key Metrics

Company financials are unavailable.



LEADING COMPANIES

Honda Motor Co., Ltd.

Table 7: Honda Motor Co., Ltd.: key facts

Head office: 1-1, 2-chome Minami-Aoyama Minato-ku Tokyo 107-8556 JPN
Telephone: 81 3 3423 1111
Fax: 81 3 5412 1515
Website: world.honda.com
Financial year-end: March
Ticker: HMC
Stock exchange: New York


Honda Motor (Honda) is one of the leading manufacturers of automobiles and the largest manufacturer of
motorcycles in the world. The company also provides a range of financial services to its customers and
dealers. The company has a total of 396 subsidiaries and 105 affiliates all over the world.

The company operates across four business divisions: automobile, motorcycle, financial services, power
products and others.

The automobiles business division manufactures passenger cars, multi-wagons, minivans, sport utility
vehicle, sports coupe, and mini vehicles. Honda's automobiles use gasoline engines of three, four or six-
cylinder power, diesel engines, and gasoline-electric hybrid systems. The company also offers alternative
fuel-powered vehicles such as natural gas, ethanol, and fuel cell vehicles.

The company's popular passenger car models include Legend, Accord, Inspire, Civic, Insight, City, Acura
RL, Acura TL, Acura TSX, and Acura CSX. In the multi-wagons, minivans, sport utility vehicle, and sports
coupe segments, the popular models include Elysion, Odyssey, Step Wagon, Stream, FREED, Edix/FR-
V, Airwave, Fit/Jazz, Partner Pilot, Ridgeline, CR-V, Element, Crossroad, S2000, Acura MDX, and Acura
RDX. The mini cars are marketed under Life, Zest, Vamos, and Acty models.

Honda manufactures its automobiles at two sites in Japan: the Saitama factory and the Suzuka factory.
The company's other major production sites are located in the US (Ohio, Alabama, and Indiana), Canada
(Ontario), UK (Swindon), Thailand (Ayutthaya) India (Uttar Pradesh), and Brazil (Sao Paulo). Yachiyo
Industry Co, one of the company's consolidated subsidiaries, assembles Mini cars for the Japanese
domestic market.

In FY2009, the company recorded total sales of 3,517,000 units of automobiles, as compared to the unit
sales of 3,925,000 in FY2008. This represents a decrease of 10.4% compared to FY2008.



LEADING COMPANIES

Out of the total sales, the company sold 556,000 in Japan; 1,496,000 in North America; 350,000 in
Europe; 793,000 in Asia; and remaining 322,000 in other regions.

The motorcycle business division produces a range of motorcycles, from the 50 cc class to the 1800 cc
class cylinder displacement. Honda's motorcycle line consists of scooters, electric-motor-assisted
bicycles, sports bikes, and large touring cycles. The motorcycles use gasoline engines developed by the
company that are air or water cooled, two or four cycled, and single, two, four, or six cylinder powered.
Honda's motorcycles are produced at the Kumamoto factory in Japan. The company also produces its
motorcycles through its subsidiaries in Italy, Spain, Thailand, Vietnam, the Philippines, India, Brazil, and
Argentina.

In FY2009, the company recorded total sales of 10,114,000 units of motorcycles, as compared to the unit
sales of 9,320,000 in FY2008. This represents an increase of 8.5% over FY2008. Out of the total sales,
the company sold 232,000 in Japan; 320,000 in North America; 276,000 in Europe; 7,523,000 in Asia;
and remaining 1,763,000 in other regions.

With an aim of providing sales support for its products, Honda offers a variety of financial services to its
customers and dealers through finance subsidiaries in countries including Japan, the US, Canada, the
UK, Germany, Brazil, and Thailand. The services of these subsidiaries include retail lending, leasing to
customers, and other financial services, such as wholesale financing to dealers.

Honda's power products and other businesses division manufactures a range of power products including
power tillers, portable generators, general purpose engines, grass cutters, outboard marine engines,
water pumps, snow throwers, power carriers, power sprayers, lawn mowers, and lawn tractors (riding
lawn mowers). Honda also manufactures the major components and parts used in its products, including
engines, frames, and transmissions.

The company also makes engines for light business jets as well as automobile fuel cells. Honda also
manufactures ASIMO (humanoid robots), which can offer many useful functions such as greeting visitors
and informing personnel of the visitor's arrival by transmitting messages and pictures of the visitor's face,
and guide visitors to a predetermined location.

Key Metrics

The company recorded revenues of $106,939 million in the fiscal year ending March 2009, a decrease of
16.6% compared to fiscal 2008. Its net income was $1,463 million in fiscal 2009, compared to a net
income of $6,410 million in the preceding year.



LEADING COMPANIES

Table 8: Honda Motor Co., Ltd.: key financials ($)

$ million 2005 2006 2007 2008 2009
Revenues 92,399.1 105,835.8 118,430.8 128,212.5 106,938.6
Net income (loss) 5,193.5 6,377.1 6,326.9 6,409.5 1,463.5
Total assets 99,521.8 112,924.3 128,572.1 134,757.4 126,247.9
Total liabilities 64,387.0 68,854.2 80,689.6 84,701.5 82,128.2
Employees 137,827 144,785 167,231 178,960 181,876

Source: company filings DATAMONITOR

Table 9: Honda Motor Co., Ltd.: key financials (¥)

¥ million 2005 2006 2007 2008 2009
Revenues 8,650,100.0 9,908,000.0 11,087,100.0 12,002,834.0 10,011,241.0
Net income (loss) 486,200.0 597,000.0 592,300.0 600,039.0 137,005.0
Total assets 9,316,900.0 10,571,600.0 12,036,500.0 12,615,543.0 11,818,917.0
Total liabilities 6,027,700.0 6,445,900.0 7,553,900.0 7,929,472.0 7,688,573.0


Table 10: Honda Motor Co., Ltd.: key financial ratios

Ratio 2005 2006 2007 2008 2009
Profit margin 5.6% 6.0% 5.3% 5.0% 1.4%
Revenue growth 6.0% 14.5% 11.9% 8.3% (16.6%)
Asset growth 11.9% 13.5% 13.9% 4.8% (6.3%)
Liabilities growth 10.5% 6.9% 17.2% 5.0% (3.0%)
Debt/asset ratio 64.7% 61.0% 62.8% 62.9% 65.1%
Return on assets 5.5% 6.0% 5.2% 4.9% 1.1%
Revenue per employee $670,399 $730,986 $708,187 $716,431 $587,975
Profit per employee $37,681 $44,045 $37,833 $35,815 $8,047




LEADING COMPANIES

Figure 6: Honda Motor Co., Ltd.: revenues & profitability


Figure 7: Honda Motor Co., Ltd.: assets & liabilities




LEADING COMPANIES

Suzuki Motor Corporation

Table 11: Suzuki Motor Corporation: key facts

Head office: 300 Takatsuka-cho Minami ku Hamamatsu City 432 8611, JPN
Telephone: 81 53 4402904
Website: www.globalsuzuki.com
Financial year-end: March
Ticker: 7269
Stock exchange: Tokyo


Suzuki Motor (Suzuki) designs and manufactures passenger cars, commercial vehicles, motorcycles, all
terrain vehicles (ATVs), outboard motors, and other products. The company also develops businesses of
logistics and other services related to the respective operations. It promotes technical co-operation
through numerous joint ventures overseas. Suzuki operates in 193 countries, and its main production
facilities are located in 23 countries and areas worldwide. The company has 141 subsidiaries and 37
affiliate companies.

The company operates through four business segments: automobile, motorcycle, marine and power
products, and financial services.

The automobile segment manufactures sports utility vehicles, minicars, and premium and luxury cars.
Suzuki's brands in the automobile segment comprises of Swift, SX4 (sports crossover vehicle), Splash,
Grand Vitara, Jimny, Alto/CERELIO, APV, and Kizashi. The company manufactures its automobiles
through its subsidiaries, Magyar Suzuki, Maruti Suzuki India, and through an affiliate, CAMI Automotive.
The automobile parts are manufactured by Suzuki Hamamatsu Auto Parts Mfg. and others. The
marketing of automobiles is carried out by its subsidiaries, Suzuki Motor Sales Kinki, Japan; American
Suzuki Motor, the US; and other marketing companies. The company also offers various logistics services
through its subsidiary, Suzuki Transportation & Packing.

In FY2009, the company's worldwide automobile production was 2,494,000 units, and its global sales
were 2,306,000 units.

The motorcycle segment manufactures motorcycles, scooters, ATVs, and motorsports. Suzuki's brands in
the motorcycles segment comprises of Let's4 and Let's5 scooters, Gemma, GSR400/ABS, Gladius,
Bandit 650, GSXR1000, Suzuki Boulevard M90 cruiser and the KINGQUAD 750AXi 4x4 ATV.



LEADING COMPANIES

Motorcycles are manufactured by the company and its subsidiary, Thai Suzuki Motor, and an affiliate,
Jinan Qingqi Suzuki Motorcycle. The motorcycle parts are manufactured by the company's subsidiary,
Suzuki Toyama Auto Parts, Japan and others. The motorcycle parts manufactured by Suzuki's
subsidiaries are purchased by the company itself.

The company conducts the marketing of the motorcycles in the domestic market through a subsidiary,
Suzuki Motorcycle Sales (Higashi Nihon) and other marketing companies. In overseas markets, the
marketing of motorcycles is conducted through a subsidiary, Suzuki International Europe, Germany and
other marketing companies. In FY2009, the company's worldwide motorcycle production was 3,295,000
units, and its global sales were 3,351,000 units.

The marine and power products segment manufacture outboard motors, motorized wheelchairs and
electro senior vehicles. Outboard motors are manufactured mainly by the company and are marketed by
its subsidiary, Suzuki Marine, Japan and others. In the domestic market, Suzuki markets its motorized
wheelchairs and electro senior vehicles through its subsidiaries such as Suzuki Motor Sales Kinki and
others, and the marketing of houses is conducted by a subsidiary, Suzuki Business.

The financial services segment of the company is conducted by a subsidiary, Suzuki Finance, and others.

In addition, Suzuki has been engaged in various business opportunities with other car manufacturers
worldwide. For instance, the company works together with General Motors to generate synergies by
utilizing and complementing resources in various areas, including advanced technologies, CAMI project,
power trains, and global joint purchasing, mutual supply of vehicles, etc. Further, Suzuki also supplies
Mazda's mini-cars in Japan, and it has cross-OEM relationship with Nissan.

Key Metrics

The company recorded revenues of $32,098 million in the fiscal year ending March 2009, a decrease of
14.2% compared to fiscal 2008. Its net income was $293 million in fiscal 2009, compared to a net income
of $857 million in the preceding year.



LEADING COMPANIES

Table 12: Suzuki Motor Corporation: key financials ($)

$ million 2005 2006 2007 2008 2009
Revenues 25,268.7 29,337.2 33,793.8 37,412.3 32,097.8
Net income (loss) 646.3 704.4 801.2 857.3 293.0
Total assets 18,088.1 19,758.4 24,797.3 25,734.3 23,049.8


Table 13: Suzuki Motor Corporation: key financials (¥)

¥ million 2005 2006 2007 2008 2009
Revenues 2,365,571.0 2,746,453.0 3,163,669.0 3,502,419.0 3,004,888.0
Net income (loss) 60,506.0 65,945.0 75,008.0 80,254.0 27,429.0
Total assets 1,693,353.0 1,849,714.0 2,321,441.0 2,409,165.0 2,157,849.0
Total liabilities 824,122.0 1,139,381.0 1,465,468.0 1,506,270.0 1,414,934.0


Table 14: Suzuki Motor Corporation: key financial ratios

Ratio 2005 2006 2007 2008 2009
Profit margin 2.6% 2.4% 2.4% 2.3% 0.9%
Revenue growth 7.6% 16.1% 15.2% 10.7% (14.2%)
Asset growth 7.3% 9.2% 25.5% 3.8% (10.4%)
Liabilities growth (5.9%) 38.3% 28.6% 2.8% (6.1%)
Debt/asset ratio 48.7% 61.6% 63.1% 62.5% 65.6%
Return on assets 3.7% 3.7% 3.6% 3.4% 1.2%




LEADING COMPANIES

Figure 8: Suzuki Motor Corporation: revenues & profitability


Figure 9: Suzuki Motor Corporation: assets & liabilities




LEADING COMPANIES

Yamaha Motor Co., Ltd.

Table 15: Yamaha Motor Co., Ltd.: key facts

Head office: 2500 Shingai Iwata Shizuoka ken 438 8501, JPN
Telephone: 81 538 32 1103
Fax: 81 538 37 4252
Website: www.yamaha-motor.co.jp
Financial year-end: December
Ticker: 7272
Stock exchange: Tokyo


Yamaha Motor is a Japan based manufacturing company which manufactures and sells motorized
products. It operates about 60 factories in 35 countries globally. The company operates through its
subsidiaries throughout Japan, Europe, North America, and Asia.

The company operates through four segments: motorcycles, marine, power products and others.

The motorcycles segment is engaged in the manufacture and sale of motorcycles, scooters and other
two-wheel products for the individual customers. The company provides sports bikes, trail bikes, road
racers, motocrossers and others.

The marine segment is engaged in the manufacture and sale of outboard motors, personal watercrafts,
electric marine motors, stern drives, pleasure-use boats, fiberglass reinforced plastic pools, fishing boats,
utility boats and diesel engines.

The power products segment offers side-by-side vehicles, golf cars, generators, small sized snow
throwers, multi-purpose engines, snowmobiles and all terrain vehicles.

The others segment offers surface mounters, individual robots, automotive engines, automotive
components, electro power assisted bicycles, unmanned industrial helicopters, electrically powered
wheelchairs and the intermediate parts.

Yamaha also manufactures golf carts and go karts, helmets, electrical power units for wheelchairs, air
conditioning units and realistic paper craft models of some of its products. The company carries out
research and development in all product areas and is involved in the management of leisure and
recreational facilities and related services. The company also focuses on the biotechnological production,
processing, sales of agricultural and marine products; and microorganisms.



LEADING COMPANIES

The company's subsidiaries include: Yamaha Motorcycle Sales Japan, Yamaha Marine, Yamaha Motor
Europe, Yamaha Motor Powered Products, Yamaha Indonesia Motor Manufacturing, Yamaha Motor
Electronics, Thai Yamaha Motor, Yamaha Motor Corporation, U.S.A., Yamaha Motor Vietnam, Yamaha
Motor Taiwan, and others.

Key Metrics

The company recorded revenues of $12,323 million in the fiscal year ending December 2009, a decrease
of 28.1% compared to fiscal 2008. Its net loss was $2,309 million in fiscal 2009, compared to a net
income of $20 million in the preceding year.

Table 16: Yamaha Motor Co., Ltd.: key financials ($)

$ million 2005 2006 2007 2008 2009
Revenues 14,687.5 16,899.2 18,764.9 17,132.4 12,323.0
Net income (loss) 683.6 824.6 760.8 19.8 (2,308.9)
Total assets 10,238.6 12,056.6 13,442.4 12,424.6 10,543.8
Employees 39,381 41,958 46,850 49,771 49,994


Table 17: Yamaha Motor Co., Ltd.: key financials (¥)

¥ million 2005 2006 2007 2008 2009
Revenues 1,375,000.0 1,582,046.0 1,756,707.0 1,603,881.0 1,153,642.0
Net income (loss) 64,000.0 77,200.0 71,222.0 1,851.0 (216,148.0)
Total assets 958,500.0 1,128,700.0 1,258,430.0 1,163,153.0 987,077.0




LEADING COMPANIES

Table 18: Yamaha Motor Co., Ltd.: key financial ratios

Ratio 2005 2006 2007 2008 2009
Profit margin 4.7% 4.9% 4.1% 0.1% (18.7%)
Revenue growth 35.9% 15.1% 11.0% (8.7%) (28.1%)
Asset growth 24.9% 17.8% 11.5% (7.6%) (15.1%)
Liabilities growth 21.1% 14.1% 9.8% 6.6% 0.4%
Debt/asset ratio 57.4% 55.6% 54.8% 63.2% 74.7%
Return on assets 7.4% 7.4% 6.0% 0.2% (20.1%)
Revenue per employee $372,960 $402,764 $400,531 $344,225 $246,490
Profit per employee $17,360 $19,654 $16,239 $397 ($46,183)


Figure 10: Yamaha Motor Co., Ltd.: revenues & profitability




LEADING COMPANIES

Figure 11: Yamaha Motor Co., Ltd.: assets & liabilities




MARKET FORECASTS

MARKET FORECASTS
Market value forecast
In 2014, the Brazilian motorcycles market is forecast to have a value of $12,825 million, an increase of
105.3% since 2009.
The compound annual growth rate of the market in the period 2009–14 is predicted to be 15.5%.

Table 19: Brazil motorcycles market value forecast: $ million, 2009–14

Year $ million BRL million € million % Growth
2009 6,246.6 12,546.1 4,492.3 (22.2%)
2010 7,067.6 14,195.0 5,082.7 13.1%
2011 9,099.2 18,275.5 6,543.8 28.7%
2012 10,249.9 20,586.6 7,371.3 12.6%
2013 11,491.4 23,080.2 8,264.2 12.1%
2014 12,825.0 25,758.5 9,223.2 11.6%

CAGR: 2009–14 15.5%


Figure 12: Brazil motorcycles market value forecast: $ million, 2009–14




MARKET FORECASTS

Market volume forecast
In 2014, the Brazilian motorcycles market is forecast to have a volume of 2,974 thousand units, an
increase of 81.1% since 2009.
The compound annual growth rate of the market in the period 2009–14 is predicted to be 12.6%.

Table 20: Brazil motorcycles market volume forecast: thousand units, 2009–14

Year thousand units % Growth
2009 1,642.0 (14.7%)
2010 1,808.3 10.1%
2011 2,219.6 22.8%
2012 2,452.6 10.5%
2013 2,704.0 10.2%
2014 2,974.0 10.0%

CAGR: 2009–14 12.6%


Figure 13: Brazil motorcycles market volume forecast: thousand units, 2009–14




MACROECONOMIC INDICATORS


Table 21: Brazil size of population (million), 2005–09

Year Population (million) % Growth
2005 189.0 1.3%
2006 191.5 1.3%
2007 193.9 1.3%
2008 196.3 1.2%
2009 198.7 1.2%


Table 22: Brazil GDP (constant 2000 prices, $ billion), 2005–09

Year Constant 2000 Prices, $ billion % Growth
2005 738.6 3.1%
2006 767.4 3.9%
2007 810.4 5.6%
2008 851.9 5.1%
2009 850.3 (0.2%)


Table 23: Brazil GDP (current prices, $ billion), 2005–09

Year Current Prices, $ billion % Growth
2005 840.8 32.4%
2006 1,018.7 21.2%
2007 1,245.3 22.2%
2008 1,467.0 17.8%
2009 1,374.4 (6.3%)





Table 24: Brazil inflation, 2005–09

Year Inflation Rate (%)
2005 6.9%
2006 4.2%
2007 3.6%
2008 5.7%
2009 4.3%


Table 25: Brazil consumer price index (absolute), 2005–09

Year Consumer Price Index (2000 = % Growth
100)
2005 151.4 6.9%
2006 157.8 4.2%
2007 163.5 3.6%
2008 172.8 5.7%
2009 180.2 4.3%


Table 26: Brazil exchange rate, 2005–09

Year Exchange rate ($/BRL) Exchange rate (€/BRL)
2005 2.4348 3.0264
2006 2.1800 2.7351
2007 1.9516 2.6704
2008 1.8402 2.6927
2009 2.0085 2.7928




APPENDIX

APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,
analyzed, cross-checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys
and supported by analysis from industry experts using highly complex modeling & forecasting tools,
Datamonitor’s in-house databases provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst
commentary, company profiles and macroeconomic & demographic information, which enable our
researchers to build an accurate market overview
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match the requirements of both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest
industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
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Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative
and qualitative data to be combined with related macroeconomic and demographic drivers to create
market models and forecasts, which can then be refined according to specific competitive, regulatory
and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and
up-to-date



APPENDIX

Industry associations
International Motorcycle Manufacturers Association
Route de Pré-Bois 20, Case postale 1838, 1215 Genève 15, Switzerland
Tel.: 0041 22 920 2120
Fax: 0041 22 920 2121

Related Datamonitor research

Industry Profile

Motorcycles in France

Motorcycles in Germany

Motorcycles in the United Kingdom

Motorcycles in Italy



APPENDIX

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