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Yamaha Cautious on India EV Expansion Due to Costs
27 Aug
Summary
- Yamaha cites battery cell import dependency as a major hurdle.
- Profit margins are compressed due to reliance on external vendors.
- Yamaha focuses on performance-oriented mobility, not pragmatic EVs.
Yamaha Motor India is taking a measured stance on aggressive expansion in the domestic electric two-wheeler market. Executive Officer Hajime Aota stated that significant dependence on imported battery cells, coupled with compressed profit margins and supply chain constraints, are key reasons for this caution.
A major challenge identified is the absence of a fully localized supply chain for lithium-ion cells. Aota explained that purchasing cells and motors from external vendors reduces Yamaha's role to assembly, significantly impacting profitability compared to their in-house engine manufacturing for conventional motorcycles.
Furthermore, Yamaha's market studies indicate that electric scooter purchases in India are predominantly pragmatic, family-driven decisions for secondary household use. This contrasts with Yamaha's core focus on individual, performance-oriented mobility, influencing their market strategy.
Despite these headwinds, Yamaha is actively exploring pricing strategies and alternative powertrain architectures, including investments in clutch-based regenerative braking systems. The company anticipates total sales and production across domestic and export markets to exceed 1.1 million units in the current calendar year, with growth expected in the latter half due to the festive season.
