Opening of Moscow Representative Office

In order to modernize automakers in the USSR and help them meet the high technology standards of Japanese manufacturers, Yamaha Motor was the first from Japan to transfer large motorcycle production engineering technology to the auto industry in the USSR, beginning in the late 1980s.
This triggered the Yamaha Motor business in the USSR. The Company then delivered a variety of products such as motorcycles, outboard motors, generators and snowmobiles, all of which proved useful in the daily lives of people in the USSR. At the outset of its business in the USSR, Yamaha Motor only exported products, in quantities and at times that best met the needs of citizens and industries in the USSR. In 1996, after the collapse of the USSR, the Company concluded distributor contracts with two Moscow-based companies, and, through these local distributors, established Yamaha showrooms in Moscow and other Russian cities.
In 2001, Yamaha Motor set up the Russian Division under the auspices of its Overseas Market Development Operations, designed to integrate the various aspects of the business in Russia. The Russian Division proceeded to extend the Yamaha Motor distribution channel to six companies in 2002, in preparation for future business expansion in the region. In 2003, the decision was taken to open a representative office to serve as a liaison between Russian business partners and Yamaha Motor in Japan. In the first stage, the representative office will open with five staff members.

The main operations to be conducted at the representative office include: mapping out plans suited to business conditions in Russia; conducting domestic market and product research, maintaining and enhancing communications with local distributors; building the Yamaha brand; and developing Russian business specialists.

As Russia enjoys growing political and economic stability, an increasing number of young people are riding motorcycles and fashionable scooters in the heart of Moscow. Demand for motorcycles in Russia in 2002 is estimated at 23,000 units, while outboard motor demand is projected at 22,000 units, as fishing on the nation's many lakes and rivers drives strong outboard demand. Meanwhile, more and more people are enjoying Western-style leisure activities, such as hunting with all-terrain vehicles in spring and fall, snowmobile riding in winter, and going fishing in outboard motorboats or riding personal watercraft in summer. Thus, demand for these products is expected to grow in Russia.