Hong Leong Yamaha Distributors Sdn Bhd

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HLI recently proposed an internal rationaliation exercise involving its Yamaha motorcycle operations in Malaysia (Click here for more information).

The assembly of Yamaha motorcycles is performed by Hong Leong Yamaha Motor Sdn Bhd (HLYM) and it currently assembles five moped models - Y100, Y110, SRE/SRX, SR-Lagenda, Y125Z; two street models - RXZ, TZM 150 ; and four leisure bike models namely - Majesty YP250, Virago 250, Virago 535 and DragStar XVS650 . Approximately 80% of motorcycles produced by HLYM are mopeds and the remainder street models and leisure bike models. The Yamaha motorcycles are principally for sale in the domestic market.

HLYM is one of the top four motorcycle assemblers/distributors in the country (via the Hong Leong Yamaha group of companies) with a current market share of approximately 17%.

HLYM also manufactures metal and plastic body parts internally, while the engines are purchased fully assembled from Hicom-Yamaha Manufacturing Malaysia Sdn Bhd, an associated company in which HLI has a 30 per cent shareholding.

HLYM commenced manufacturing of the plastic body parts following the acquisition of the injection moulding business on 30 June 1999. Tyres are sourced locally while motorcycle wheel rims are imported from Indonesia. The component and raw materials for the manufacturing of metal and plastic body parts are mainly source locally.

The distribution of Yamaha motorcycles, parts and accessories in Malaysia, is solely undertaken by Hong Leong Yamaha Distributors Sdn Bhd (HLYD).

Distribution is presently undertaken through a nationwide network of dealers. Some of these sell only Yamaha motorcycles and parts. These shops are designed to project a strong brand image through the integration of sales showroom, service and sale of parts and accessories. Certain other dealers sell a number of different makes, but the Yamaha name is given priority and these outlets also act as Yamaha service centres providing after-sales support.

HLYD's marketing strategies include the organisation of customer-based activities and image-building programmes in the media, stressing performance, reliability, styling and high resale value to promote the Yamaha brand image. HLYD is also aiming to promote sales of motorcycles in the 250cc-plus category in order to enhance its market.

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