Yamaha Motor Co., Ltd.

Business Details

This segment centers on Motorcycles (MC Business) and also handles Electrically Power Assisted Bicycles・e-Kit・Electric Wheelchairs (SPV Business) and Automotive Engines & Components. It manufactures and sells globally, mainly in emerging Asian countries (Indonesia, the Philippines, Thailand, Vietnam, etc.), and is the largest segment, accounting for approximately 65.7% of consolidated revenue. In the first quarter of FY2026 (ending December 2026), revenue was ¥479,944 million and operating profit was ¥48,976 million, achieving substantial year-on-year increases in both revenue and profit.

Recent Overview

Sharp recovery in both revenue and profit driven by significantly higher motorcycle sales and favorable foreign exchange effects

In the first quarter of FY2026 (ending December 2026), Land Mobility revenue reached ¥479,944 million (up 23.7% year on year) and operating profit reached ¥48,976 million (up 76.3% year on year), marking substantial growth in both revenue and profit. In the MC Business, demand growth in Europe and the US, along with the normalization in Vietnam following the previous year's production and shipment halt and increased sales in Thailand, India, and the Philippines, contributed to the results. Foreign exchange effects (a year-on-year yen depreciation of ¥4 against the US dollar and ¥23 against the euro) also boosted operating profit. In the SPV Business, revenue increased due to higher e-Kit sales, but operating loss remained roughly in line with the prior year due to increased R&D expenses.

Key Products

Growth Drivers

• Increased motorcycle unit sales in emerging Asian countries (Thailand, India, the Philippines)
• Sales recovery in Vietnam through normalization following the production and shipment halt
• Growth in motorcycle demand in developed markets in Europe and the US
• Expansion of the electrically assisted bicycle business driven by increased e-Kit unit sales
• Favorable foreign exchange tailwinds from yen depreciation (against the US dollar and euro)
• Improved profitability through reductions in selling, general and administrative expenses
• Advancement of the MC Business premium strategy under the medium-term management plan (models equipped with YECVT, etc.)
• Strengthening of the European electrically assisted bicycle business through the acquisition of Brose's e-Kit business

Risks

• Rising procurement costs due to the impact of US tariffs (pressuring MC Business operating profit)
• Continued operating losses in the SPV Business (mainly due to increased R&D expenses)
• Pressure on operating profit from rising procurement costs
• Risk of demand fluctuations in developed markets in Europe and the US
• Risk of recurrence of production and shipment halts in emerging markets such as Vietnam
• Foreign exchange fluctuation risk (US dollar, euro, etc.)
• Increases in selling, general and administrative expenses such as R&D expenses and personnel costs
• Procurement risks including geopolitical risk and the situation in the Middle East