To tap the wider market and compete with its rivals, Japan is establishing new manufacturing facilities and acquiring local companies.
Recently, the country's two-wheeler and motorbike major Yamaha, launched a new manufacturing unit in Karachi, Pakistan. Another Japanese company, the Rinnai Corporation, which is based in Nagoya and manufactures gas appliances, including energy-efficient tankless water heaters, home heating appliances and boilers, announced that it was acquiring a local company in Melbourne, Australia.
With a population of over 180 million, Pakistan is a growing market of consumer goods.
In an estimate, the country has some 1.7 million motorcycle users because of lack of public transportation.
A majority of motorcycles in Pakistan are imported from China, which are old-fashioned.
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Japan's Yamaha has introduced the new 125cc engine motorcycle "YBR125" in Pakistan.
The response has been tremendous at all 140 dealers across Pakistan.
Ahmad Bilal Anwar, an authorised dealer of Yamaha Motor Pakistan, said, "Yamaha has come back to Pakistan after a gap of three to four years, and I believe, and the people are very excited to have this new model here."
Farhan Farooq, a Yamaha user, said acquiring the bike was "Like a dream comes true for us".
Yamaha Pakistan launched its manufacturing unit on April 27 this year. The new facility, with a total floor area of 17,000 square meters in Karachi has 210 employees.
Yamaha first ventured into Pakistan in 1975 through the Dawood Corporation.
The joint venture shut down operations in 2008 when the motorcycle market had started to grow rapidly. It was a time when Yamaha had to become more independent through a future marketing strategy in Pakistan that aimed to expand its manufacturing base with new motorcycle models.
Yassushi Ito, Managing Dirctor, Yamaha Motor Pakistan (Private) Limited, said, "Yamaha Motor's establishment of a new company and re-entry into the Pakistani motorcycle market represents the company's expansion strategy in the emerging countries with high growth potential. Yamaha gives top priority to Pakistan market."
Yamaha Pakistan aims to expand production to 400,000 units per year by the end of 2020.
Hiroshi Sato, Director Manufacturing, Yamaha Motor Pakistan (Private) Limited, said, "We started from the scratch with hiring people and providing them basic training. We also send our engineers and production leaders to our headquarters in Japan for core training. Our Pakistani staff is well known in Japan for their enthusiasm and hard work. We give respect to Islam culture and have introduced our Japanese exercise to promote teamwork. It creates unity at the workspace to start a day."
In Australia, Japan's Rinnai Corporation has acquired Brivis Climate Systems, an Australian supplier of fixtures and fittings for 4.8 billion yen.
The agreement was completed earlier this year through the company's second-tiered subsidiary Rinnai Australia located in Keysborough, Victoria.
Rinnai launched sales of heating systems in Australia in the 1970s and then complemented its presence with tank less water heaters in the 1990s.
The company establishes an active profile as a top distributor in this market with wide products range which covers heating and climate products, and has a very large market share of solar thermal systems.
With the acquisition of Brivis, Rinnai expects to enhance activities in this segment, reinforcing business prospects in Asia-Pacific and Oceania, as the core of its overseas business strategy.
Greg Ellis, Managing Director, Rinnai Australia Pty Ltd, said, "The Brivis company already has modest market shares in exports to the middle east and the parts of Asia. Clearly, this is strategically synergistic with the Rinnai's suppliants and Rinnai's own exports, Rinnai Australia that has own exports in the same regions. By combining these two products and brands, and leveraging the strength of Rinnai, We believe that we will have much stronger penetration into those market for export."
Brivis is a well respected brand with very strong market shares in products such as ducted gas heating and evaporating cooling and refrigeration systems, predominately for the air-conditioning needs of Australia, and has solid connections within the builder's market.
Celeste Camillo, General Manager, Brivis Climate Systems Pty Ltd, said, "Brivis exports now to New Zealand to South Africa, and has exported to Pakistan and El Salvador. I think there is a great opportunity in Asia for Brivis products, especially in dry air climate area of Pakistan and India for the evaporating cooling product. The more-dimensions in the Rinnai and Brivis story, targeting some great product development and then putting that to the rest of the world, and I think that Asia has great opportunities for both brands together."
Ellis further stated, "We think that the gas and hybrid products that we will be developing with Brivis and Rinnai Japan, will have very clear market tractions and lead Rinnai to be No1 in the most of the segment of we wish to compete in here."
Japanese firms are actively expanding their market share globally by establishing manufacturing units in the potential states.
