Yamaha to speed up premium game in India, gunning for a bigger market share

Yamaha has made a strong comeback in the scooter segment. How do you plan to sustain the growth?

We initially entered the scooter market with lower-priced models but struggled to compete on cost. This prompted a strategic shift toward the premium segment, particularly in the 125cc and above category. That focus has paid off. In 2024, our domestic scooter sales grew by 30 per cent over CY2023, driven by strong customer response to our Ray ZR and Fascino Hybrid models. Our Aerox 155, a performance scooter, also saw 40 per cent growth, highlighting the rising demand for higher-segment scooters in India. We’re witnessing increased interest from young professionals and women, who are drawn to scooters for their accessibility, ease of use, and storage capacity. There’s also a clear shift toward performance scooters, with many riders seeking motorcycle-level thrill combined with scooter convenience, fuelling growth in the 150cc segment. Looking ahead, we expect double-digit growth in domestic sales. We aim to sustain this momentum by expanding into high-potential markets, investing in future-ready technologies, introducing global models, and enhancing customer engagement initiatives across the scooter segment.

Could you share your plans for sales growth and network expansion?

Overall, our sales will be more than a million units (domestic plus exports) in 2025 (the total volumes, including domestic sales and exports, were in the region of about 9.8 lakh in 2024). Yamaha is expanding its presence across tier 1 and tier 2 cities while also deepening penetration into semi-urban markets. We have registered double-digit domestic growth in East, West, North, and South zones. Our presence is already strong in the East and South; while we are progressing well in the West, our focus now is to penetrate deeper into the North. A key pillar of this strategy is the rapid expansion of our Blue Square (BSQ) network, which now includes over 480 outlets across the country. We aim to have close to 600 BSQ dealerships by the end of this year.

What is your current capacity utilisation, and is there a plan to expand?

Yamaha operates two plants in India with a combined annual capacity of 1.5 million units, currently running at about 70 per cent utilisation. This will support both present demand and future growth. The Surajpur plant focuses on premium motorcycles, while the Chennai plant produces scooters and export models. With ample room for growth, we will actively work on expanding capacity to meet rising demand. Going forward, we aim to leverage India’s cost advantages and strengthen our position as a global export hub by scaling operations for both domestic and international markets.

With the growing trend of premiumisation in the market, and how is Yamaha leveraging this shift in the motorcycle segment?

Since 2018, Yamaha has strategically focused on the premium two-wheeler segment in India, a move that has significantly strengthened our market position. Our premium market share has grown from 10 per cent in FY 2017–18 to nearly 17 per cent in CY2024, reflecting the success of our focused approach. We’re now aiming for a 25–30 per cent share by the end of this decade. The Indian two-wheeler industry is witnessing a clear trend of premiumisation, driven by changing consumer lifestyles, evolving urban mobility needs, and the aspirations of Gen Z, with 25 million new entrants each year. While not all have immediate purchasing power, the segment of young riders seeking individuality and performance is growing rapidly, especially in metros and urban centres. Though we can’t share specific product plans, our focus remains clear: to expand and upgrade our premium line-up and continue leading the premiumisation trend in India’s two-wheeler market.

Which areas are you prioritising in the premium or higher displacement bike segment?

Yamaha’s motorcycle range is designed to cater to a diverse set of riders—from young enthusiasts to seasoned motorcyclists. Gen Z riders entering the workforce are drawn to the R15 and MT-15, which offer an exciting blend of performance and design. At the same time, we are strengthening our presence in the 150cc segment by targeting riders who are transitioning from commuter motorcycles. Our goal is to be their preferred choice by offering the right mix of performance, technology, and reliability. Expanding this segment remains a key focus area. For existing Yamaha customers and fans of the R15 and MT-15, we have introduced the R3 and MT-03 as natural upgrade options—making them more accessible through revised pricing. Also, the 700–900cc segment is gaining traction in India, driven by rising disposable incomes, evolving lifestyle preferences, and a growing passion for motorcycling. This year, Yamaha will enter this space, further strengthening our premium motorcycle portfolio.