Yamaha Motor believes that popularising electric motorcycles requires careful consideration of how well developed the corresponding infrastructure is in each country.
According to its global President and Representative Director, Motofumi Shitara, engines that use hydrogen, biofuels or e-fuels represent an opportunity whereby “we can utilise the internal combustion engine technologies we have been refining for decades”.
Yamaha, therefore views electrification as “just one of multiple pathways” to achieving carbon neutrality and is carrying out development using a ‘multi-pathway’ approach that encompasses existing engine and drivetrain technologies as well as new energy-compatible technologies.
“We will continue looking for solutions that aptly suit the circumstances of each country/region,” adds Shitara in the Japanese two-wheeler maker’s recently published Integrated Report 2025. The company intends to advance development of its own platform and collaborate with external partners to strengthen its competitiveness and accelerate business expansion.
I served as President of Yamaha Motor India for four years from 2018, and I got a firsthand sense of the potential within high-end products as we tackled the local premium market. I am convinced that there is still room for growth in emerging markets in Asia and elsewhereMotofumi Shitara
India ride with River Mobility
In India, Yamaha has invested in World of River, a startup that develops and sells electric scooters. World of River has established River Mobility, a group company in Bengaluru whose scooters “excel in both quality and design”. Through this investment in World of River, Yamaha is hoping to “unearth new opportunities” for business partnerships in India’s EV market. The overall strategy will focus on in-house platform development and external collaborations, acquisition of powerful platforms for global expansion and establishment of core competencies and strengthen competitiveness. As in the case of the investment in River, the goal is to collaborate with external partners and leverage their expertise to “pursue rapid business development”.
Yamaha has also noted that although consumer demand in India has “recently cooled” off, its premium segment strategy will continue targeting growth markets. According to the report, the company has further expanded its network of Blue Square dealerships which embody the brand image to 469 locations across India.
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“I served as President of Yamaha Motor India for four years from 2018, and I got a firsthand sense of the potential within high-end products as we tackled the local premium market. I am convinced that there is still room for growth in emerging markets in Asia and elsewhere,” says Shitara in his message.
The growth targets set for sales of premium segment models were not achieved in India last year due to semiconductor supply constraints and slower-than-expected demand recovery. “Going forward, we recognise that key challenges will include optimising the sales mix and increasing the market penetration of high-value-added models to accelerate future growth,” says the Integrated Report.
Customer engagement in India will intensify by targeting Gen Z (those born between 1995 and 2010) and ramping up experiential events. This strategy will also extend to ASEAN and other emerging markets where Gen Z—“a key demographic for future consumption demand”— will be the primary target with products that resonate with such customers. “Through a marketing approach that combines in-person events with digital experiences, we aim to deepen resonance and engagement with the Yamaha Motor brand,” states the report.
Our operating environment is becoming increasingly complex, with factors including U.S.–China trade friction, rising geopolitical risks, and labour shortages in Japan due to the declining birthrate and ageing populationMotofumi Shitara
Value innovation factory
Beyond this, the company is keen to improve productivity per employee as well as “making work more enjoyable” and it is keeping this in mind that it is globally rolling out the value innovation factory (VIF) concept. This combines theoretical-value-based production with manufacturing digital transformation.
Yamaha is also implementing demand chain innovation which reduces supply response time with the ultimate aim of enabling customers to buy whatever products they want as and when they want them.
“We define VIF as a factory that combines theoretical-value-based production with digital transformation, with the aim of creating innovative value that goes beyond improvements based simply on a theoretical-value-based approach,” says the report.
In the motorcycle assembly process, the company has installed new lines capable of producing all products in single unit lots. “This allows us to produce the desired model in the desired quantity and minimise product delivery times,” it adds.
Yamaha has fully automated component supply, transportation and inspection, with the necessary components being automatically transported from their respective locations in accordance with the assembly sequence. Further, it has adopted a mechanism that automatically rises or lowers to match the stature and working position of the employee conducting the assembly.
“To roll out VIF projects throughout the group as quickly and inexpensively as possible, we plan to train more than 800 employees in on-site digital transformation over the next three years,” says the report.
The biggest question for Yamaha Motor right now is whether we have truly been consistent in generating innovation. For us to achieve sustainable growth going forward, we need to further enhance our technological development capabilitiesMotofumi Shitara
Global procurement initiatives
Interesting initiatives are also being planned in the procurement space where Yamaha has 18 bases around the world. The upper level of the organisation consists of management at headquarters in Japan and procurement chiefs in each country. With rising social diversity, Yamaha is appointing general managers from among locally hired employees and also promoting active participation of women.
“We are also working to make bases outside Japan independent and self-reliant by planning activities for considering optimal procurement sources, promoting cost reductions, and engaging in business continuity planning,” explains the Integrated Report. This structure facilitates close communication between procurement leaders at each base and core procurement members.
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Shitara, who recently took over the mantle of President, is keen on making Yamaha Motor a strong, robust company that adapts quickly to change in these times of uncertainty. “Our operating environment is becoming increasingly complex, with factors including U.S.–China trade friction, rising geopolitical risks, and labour shortages in Japan due to the declining birthrate and ageing population,” he has observed.
It is precisely because the future is so unpredictable that “we need to fundamentally transform both our management and businesses, and further hone our strengths in technological development”. According to Shitara, achieving flexible and agile business operations based on an accurate grasp of changes in the external environment, and consistently bringing forth innovations will be required of Yamaha in the coming years.
To evolve into a truly resilient company, he reiterates that each member of the management team must confront head-on the issues their businesses and departments are facing in order to steadily build up strength through daily efforts.
When investing in a factory for instance, it is important to go beyond simply forecasting the return on investment and profitability and, instead, verify the actual improvement in productivity and then take additional measures as necessary.
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Enhancing technological capabilities
“The biggest question for Yamaha Motor right now is whether we have truly been consistent in generating innovation. For us to achieve sustainable growth going forward, we need to further enhance our technological development capabilities,” elaborates Shitara.
The reality also lies in the fact that a number of new Yamaha technologies and products have failed to gain market support. “Have we been too slow in identifying the technological issues that should be our focus? Have we lost sight of our desire to spark change and instead ended up merely following in the footsteps of other companies?” he wonders.
The key is to deepen the cycle of taking on challenges and verifying their results. In Shitara’s view, technological development consists of today’s work, tomorrow’s work, and the day after tomorrow’s work.
“Today’s work entails updating existing technologies while tomorrow’s involves backcasting from a vision for the future to build depth in areas where we are taking on new challenges. The day after tomorrow’s work consists of addressing long-term technical issues without any time constraint,” explains the Yamaha President.
While all are important, a bias toward ‘today’s work’ will bring evolution to a standstill, while focusing too much on ‘the day after tomorrow’s work’ runs the risk of “us becoming complacent and failing to increase corporate value”.
It is for this reason, continues Shitara, that it is important to be conscious of the balance in the timelines of these three approaches while always keeping ‘tomorrow’s work’ as the central emphasis in setting clear R&D themes and goals.
