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NSK Brazil Pressing Aftermarket Sales

Resource from:  CBCC Likes:3001
May 25,2006
NSK Brazil Ltda. (on the web here, a division of NSK Ltd., Japan) is targeting new markets to continue pursuing its aggressive market share strategy. Located in Sao Paulo, NSK Brasil currently has approximately 5% share of the large and growing aftermarket for motorcycle bearings. By 2009, NSK Brasil said it intends to triple its market share, to at least 15%. There are several million motorcycles in Brazil, and annual demand has grown to nearly 1 million units; most are 125cc to 150cc machines in frequent use as daily transportation. The motorcycle market is yet another where NSK Brasil has targeted aggressive sales growth and market penetration. It already sells bearings to Brazilian motorcycle plants run by Japanese companies Honda and Yamaha. The OEM sales relationships are important to feeding NSK the aftermarket demand; for example, 80% of the motorcycles sold in Brazil are Hondas. In 2005, NSK's aftermarket bearing sales in Brazil grew by more than 20%. However, most of the replacement bearing sales are in industrial markets, particularly Brazil's strong mining, ore production, chemical and petroleum sectors. Targeting automotive and motorcycle replacement bearing markets are the next steps in the strategy. NSK has a long history in Brazil. Although it now has 36 manufacturing operations in 24 countries, in 1972, NSK chose Sao Paulo, Brazil for its first manufacturing facility outside Japan. Brazil has continued to be a favorite market for the company, in an economy it describes as, "buoyant" bringing, "robust demand."
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