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The nation's economic hub Thursday became the site of a joint venture marketing company between Japanese motorcycle manufacturer Yamaha and its long-time Chinese partner Jianshe Group.
Speaking at the launch of the venture, Yamaha Motor Corporation representative managing director Takashi Kajikawa, said the new Shanghai Yamaha Jianshe Motor Marketing Co Ltd will be responsible for nationwide Yamaha-branded motorcycles sales, as well as relevant after sales services and accessory sales.
Yamaha originally had two joint ventures in China, Jianshe Yamaha in Southwest China's Chongqing Municipality, which was set up in 1992, and Nanfang Yamaha in Zhuzhou, in Central China's Hunan Province, established in 1993.
Although the two companies produce the same brand motorcycles, they have separate nationwide sales facilities.
The new company in Shanghai, with a registered capital of US$4 million, is regarded as the country's first motorcycle sales joint venture, combining the sales networks of Yamaha's two joint ventures and will function as Yamaha motorcycles sales center in China, according to company sources.
The previous two joint ventures in Chongqing and Zhuzhou will now just focus on production, it was revealed at the press conference.
The new company aims to develop 2,500 sales agents across the country by 2006, helping it secure a 20 percent share of the nation's total motorcycle sales, according to sources at the joint venture.
The establishment of the sales company came only weeks after Jianshe Group became Yamaha's sole strategic partner in China.
Jianshe Group, which runs a joint venture with Yamaha in Chongqing, last month paid 280 million yuan (US$33.8 million) in the deal to take a 50 percent stake in the Japanese firm's other joint venture from its Chinese side, according to Chen Yongqiang, general manager of Jianshe Group.
"We have decided to strengthen our co-operation with Yamaha in a deeper and broader way; we believe the expense (US$33.7 million) is justified," Chen told the press release Thursday.
Chen also predicted that further restructuring in the sector will lead to another period of rapid growth in the domestic motorcycle industry.
Jianshe Group is set to become one of the nation's "big three" motorcycle makers, as its sales are expected to top 1 million this year, according to Chen.
He further forecast that the group's annual motorcycle sales will reach 2 million by 2006 and 4 million by 2009.
China is currently the world's largest motorcycle market, with more than 15 million motorcycles sold in 2003, according to China Association of Automobile Manufacturers statistics.
(China Daily May 14, 2004)
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