Yamaha has revealed that the brand is facing a shortage of semiconductor chips for its premium range of motorcycles in the Indian market. A recent Q&A session conducted with Yamaha’s leadership team in Japan after their 3rd quarter results revealed that the shortage of semi-conductor chips in India is due to the fact that only a small percentage of the total semiconductor distribution from Japan is being allocated to the Indian market. In addition to this, the brand has also revealed that the company needs to restock inventories of their popular motorcycles – the YZF-R15 and MT-15 in India.
Shortage of Semiconductors – A Global Phenomenon
Yamaha aims to focus on the semiconductor shortage issues and resolve the problem as quickly as possible. Currently, almost all automobile manufacturers are facing issues regarding semi-conductor chips in the global market. India has always been one of the most critical markets for Yamaha.
However, the brand reveals that the shortage of chips may extend towards the large part of 2022. The demand for Yamaha’s premium motorcycle products remains strong in India, Indonesia, the Philippines, and Thailand. Yamaha also reveals that even though their inventory levels are low in Indonesia and Thailand, the brand’s production facilities are at full capacity.
The Challenges For The Japanese Brand
The brand is yet to face additional challenges in its 4th quarter with regards to parts supply and production. The brand is also likely to go through a difficult time due to the rise in raw material costs and labour costs. The brand will also be focussing on increasing its marginal income, curbing expenses, and raising profits. Yamaha has also decided to reduce expenses in relation to its sales promotion as well as other business practices to improve return on its sales.
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