Japanese two-wheeler maker Yamaha expects a strong recovery in 2026 after a difficult 2025, projecting double-digit growth driven by resilient demand and easing supply-chain constraints. As it sharpens its focus on scooters, exports, premium products and electrification, Yamaha is looking to accelerate growth in India. Hajime Aota, chairman, Yamaha Motor India Group, spoke to TOI about the industry’s outlook, competition in the premium motorcycle segment, and the company’s plans for the EV era. Excerpts:How is Yamaha India performing in this calendar year amid industry challenges?While 2025 was a difficult year, 2026 is progressing better than our projections. One of the biggest concerns earlier this year was the potential disruption caused by shortages of LPG and aluminium, which at one stage raised fears of production stoppages. However, two factors helped the company navigate those challenges. First, demand has remained strong. Second, although we have been operating with a very thin margin of safety, supplies have remained adequate. We also had to closely monitor Tier-2, Tier-3 and Tier-4 suppliers, as they were facing similar difficulties. Demand, meanwhile, has remained resilient despite broader economic uncertainties.Why has Yamaha’s scooter business outperformed motorcycles in recent years?One reason is that motorcycle growth has become constrained. As competition intensified, we were not effective enough in building aspiration around our motorcycle products. That is something we need to acknowledge and improve. On the other hand, we have improved scooter supply management. Scooter buyers typically visit a dealership with a specific model and colour in mind. If the product is unavailable, they often switch immediately to another brand. Improved inventory management has boosted conversion rates at dealerships because customers are more likely to find their preferred scooter in stock. Stronger supply-chain execution, along with updates to the Fascino, supported growth.What are the key challenges in the motorcycle segment?Yamaha’s core strength lies in the 150cc segment, while competitors have increasingly expanded into larger-displacement motorcycles. Customers often compare 150cc motorcycles with 350cc models and perceive the latter as offering better value. However, engine size alone does not tell the whole story. What we are able to achieve with a 150cc motorcycle is often beyond what a typical 150cc motorcycle can deliver. The challenge is communicating this effectively. Every year, around 25 million Indians reach driving age, so we have to keep educating and engaging customers continuously.What is Yamaha’s electrification strategy in India?We are no longer in a study phase and have identified our strategic direction. However, organisational transformation takes time, and Yamaha is focused on gradually building capabilities rather than making disruptive changes. Our EC-06 electric scooter is aimed at Yamaha customers interested in electrification. We believe EV buyers behave differently from conventional two-wheeler customers and often seek a different retail experience. We are therefore evaluating whether dedicated EV retail formats will be required in the future. India offers the strongest EV opportunity among Yamaha’s global markets and will play an increasingly important role in shaping our electrification roadmap.What is Yamaha’s growth outlook for 2026?Yamaha expects the Indian two-wheeler industry to grow by around 10-12% in 2026, taking overall volumes to about 22-23 million units. We expect double-digit growth and are targeting domestic sales of 7.8 lakh units in CY2026, compared with 6.6 lakh units in 2025. In Q1 2026 (January-March), we sold around 2.08 lakh units, up nearly 33% from a year earlier. Scooters will continue to outperform motorcycles over the next three to six months, supported by faster replacement cycles and rising interest in electric scooters.What will be the domestic-export mix, and will exports see a bigger push?Today, Yamaha produces around one million motorcycles annually in India, with roughly 70% sold domestically and 30% exported. We would like to maintain that balance while growing overall volumes. In 2026, we target exports of 3.5 lakh units, up from 3.43 lakh units in 2025 and 2.78 lakh units in 2024. Our key export markets include Bangladesh, Sri Lanka, Nepal, Colombia and the Philippines. Over time, domestic market growth may moderate as electrification reshapes the industry. Therefore, exports will become an increasingly important pillar of our strategy, supported primarily by motorcycles.Given your future growth plans, are you looking at manufacturing capacity expansion?Today, we have a total installed production capacity of 1.5 million units per year, with roughly 900,000 units in Chennai and 600,000 units at our northern plant. Capacity expansion is currently under active evaluation, although no final decision has been taken. Yamaha has the flexibility to expand both its northern and southern facilities and does not currently see a need for a greenfield plant. Instead, the focus is likely to be on expanding existing facilities, given their established supplier ecosystems. I expect a decision on the way forward to be finalised within this year.What are Yamaha India’s key priorities for the remainder of 2026?New product launches remain our biggest focus. We have already introduced updates to the Fascino and have additional products planned for launch this year. In total, there could be three or four product introductions across motorcycles and scooters. The broader objective is clear: we need to become faster and more responsive to Indian consumers, strengthen local product development, improve our competitiveness in exports, and prepare the organisation for a future in which internal-combustion and electric vehicles coexist. That transformation is already underway, but significant work remains.
