As Yamaha Motor India sharpens its premium-focused strategy, the company is balancing growth, profitability, and evolving consumer preferences in one of the world’s largest two-wheeler markets. In an interview with Akbar Merchant, Yamaha Motor India Group Chairman Hajime Aota dwells on the brand’s repositioning, regional expansion plans, and outlook on electrification and alternative powertrains, manufacturing footprint, and export ambitions. Excerpts:
What is Yamaha India’s sales outlook over the next few years, and what are the key drivers of growth?
We produced a total of 1.02 million units in 2025, of which 659,000 were for the domestic market and 343,000 for exports to over 59 countries. In Q1 (January-March 2026), our sales grew 33% year-on-year to over 208,000 units, reflecting strong momentum across segments. Going forward, we are targeting around 10% annual growth over the next five years, supported by a balanced mix of domestic demand and export expansion.
Does your premium-focused strategy limit volumes or constrain growth in a price-sensitive market like India?
Our primary focus is on profitability rather than chasing volumes alone. While volumes remain important, we prioritise sustainable margins and long-term value creation. That said, FY26 has seen stronger-than-expected growth in both sales and volumes, indicating that our strategy is delivering results.
What is Yamaha’s market share in India, particularly in your focus segments?
Overall, our market share remains in the low single digits. However, within the premium segment, specifically in the 125-150 cc category, we hold around 12-13% share. While this is a solid base, we see significant headroom to grow further.
How significant is India within Yamaha’s global operations and strategy?
India contributes about 10% of Yamaha’s global sales and nearly 20% of its production volumes. We export to 59 countries from India, making it a key hub for mid-range products in our global portfolio.
What are your current manufacturing capabilities and export priorities in India?
We operate two manufacturing plants, one in Surajpur in Uttar Pradesh and another in Oragadam near Chennai. The Chennai facility is more export-oriented due to its proximity to ports… Our future investments will aim to balance domestic demand and export opportunities.
What is your sales and service footprint across India?
We have a network of around 745 dealerships across the country. Of these, over 550 outlets operate under the ‘Blue Square’ concept, which focuses on delivering a premium retail experience and catering to younger, aspirational customers.
Which regions are currently your strongest markets, and where do you see the biggest growth opportunities?
We have a strong presence in south India and a well-established base in the east. However, our key growth focus remains on north and west India, where brand visibility and market penetration need further strengthening.
How do you assess Yamaha’s positioning in India, especially after strategic shift?
Since 2017-18, we have consciously moved towards a more focused approach, concentrating on premium segments and younger customers. By leveraging our legacy products and heritage, we are building a distinct and differentiated brand identity in the market.
What are your plans for electric mobility in India, and how do you see the segment evolving?
India is a very important market for electrification, given the high fuel costs and relatively lower electricity prices. We expect two-wheeler EV penetration to reach around 10% over time. We have already launched the EC-06 electric scooter and plan to introduce another electric model later this year.
What is your view on alternative powertrains such as hybrids and CNG in the Indian context?
Hybrid technology is already part of our portfolio and offers tangible benefits in terms of fuel efficiency. CNG, however, presents challenges for premium motorcycles, particularly from a design and packaging perspective. That said, we remain open to exploring opportunities as technology evolves.
What are the key policy or regulatory challenges facing the industry today?
Frequent changes in fuel norms, including evolving ethanol blending targets, create uncertainty for product planning and long-term investments. A stable and predictable policy framework would go a long way in enabling manufacturers to plan effectively.
What is your broader vision for Yamaha in India in the medium-to-long term?
Our focus is on strengthening R&D capabilities in India, expanding our export footprint, and introducing technologies that enhance efficiency and safety. At the same time, we aim to deliver products that are both aspirational and practical for Indian customers.