Brazil

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Brazil - Motorcycles 0076 - 0403 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied

INDUSTRY PROFILE

Motorcycles in

Brazil

Reference Code: 0076-0403

Publication Date: September 2010

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 % Growth2005 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 D A T A M O N I T O R

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 % Growth2005 1,032.32006 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 % ShareMotorcycles 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 % ShareUnited 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 % ShareHonda 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 D A T A M O N I T O R

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 Source: company website D A T A M O N I T O R

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 2009Revenues 92,399.1 105,835.8 118,430.8 128,212.5 106,938.6Net income (loss) 5,193.5 6,377.1 6,326.9 6,409.5 1,463.5Total assets 99,521.8 112,924.3 128,572.1 134,757.4 126,247.9Total liabilities 64,387.0 68,854.2 80,689.6 84,701.5 82,128.2Employees 137,827 144,785 167,231 178,960 181,876 Source: company filings D A T A M O N I T O R

Table 9: Honda Motor Co., Ltd.: key financials (¥) ¥ million 2005 2006 2007 2008 2009Revenues 8,650,100.0 9,908,000.0 11,087,100.0 12,002,834.0 10,011,241.0Net income (loss) 486,200.0 597,000.0 592,300.0 600,039.0 137,005.0Total assets 9,316,900.0 10,571,600.0 12,036,500.0 12,615,543.0 11,818,917.0Total liabilities 6,027,700.0 6,445,900.0 7,553,900.0 7,929,472.0 7,688,573.0 Source: company filings D A T A M O N I T O R

Table 10: Honda Motor Co., Ltd.: key financial ratios Ratio 2005 2006 2007 2008 2009Profit 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 $587,975Profit per employee $37,681 $44,045 $37,833 $35,815 $8,047 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



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

Source: company filings D A T A M O N I T O R

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 Source: company website D A T A M O N I T O R

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 2009Revenues 25,268.7 29,337.2 33,793.8 37,412.3 32,097.8Net income (loss) 646.3 704.4 801.2 857.3 293.0Total assets 18,088.1 19,758.4 24,797.3 25,734.3 23,049.8Total liabilities 8,803.1 12,170.7 15,653.9 16,089.8 15,114.1 Source: company filings D A T A M O N I T O R

Table 13: Suzuki Motor Corporation: key financials (¥) ¥ million 2005 2006 2007 2008 2009Revenues 2,365,571.0 2,746,453.0 3,163,669.0 3,502,419.0 3,004,888.0Net income (loss) 60,506.0 65,945.0 75,008.0 80,254.0 27,429.0Total assets 1,693,353.0 1,849,714.0 2,321,441.0 2,409,165.0 2,157,849.0Total liabilities 824,122.0 1,139,381.0 1,465,468.0 1,506,270.0 1,414,934.0 Source: company filings D A T A M O N I T O R

Table 14: Suzuki Motor Corporation: key financial ratios Ratio 2005 2006 2007 2008 2009Profit 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% Source: company filings D A T A M O N I T O R

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 Source: company website D A T A M O N I T O R

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 2009Revenues 14,687.5 16,899.2 18,764.9 17,132.4 12,323.0Net 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 10,543.8Total liabilities 5,874.0 6,704.3 7,362.0 7,847.9 7,881.2Employees 39,381 41,958 46,850 49,771 49,994 Source: company filings D A T A M O N I T O R

Table 17: Yamaha Motor Co., Ltd.: key financials (¥) ¥ million 2005 2006 2007 2008 2009Revenues 1,375,000.0 1,582,046.0 1,756,707.0 1,603,881.0 1,153,642.0Net 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 1,163,153.0 987,077.0Total liabilities 549,900.0 627,633.0 689,209.0 734,690.0 737,810.0 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Table 18: Yamaha Motor Co., Ltd.: key financial ratios Ratio 2005 2006 2007 2008 2009Profit 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 $246,490Profit per employee $17,360 $19,654 $16,239 $397 ($46,183) Source: company filings D A T A M O N I T O R

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 % Growth2009 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 % Growth2009 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) % Growth2005 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 % Growth2005 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 % Growth2005 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 =

100)% Growth

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 3.02642006 2.1800 2.73512007 1.9516 2.67042008 1.8402 2.69272009 2.0085 2.7928


APPENDIX



APPENDIX

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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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