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Yamaha to Pursue Multi-Pathway Strategy, Not Just EVs, in Global Carbon Neutral Push

Published on 22 Jul, 2025, 10:08 AM IST
Updated on 22 Jul, 2025, 10:08 AM IST
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Sutanu Guha
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Yamaha believes that one can achieve carbon neutrality by using ICE technologies that have been “refined for decades.”

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While many automakers are rushing toward full electrification, Yamaha Motor Company has made it clear that its roadmap to carbon neutrality will not rely solely on electric vehicles (EVs). In its newly released Integrated Report 2025, the Japanese two-wheeler major emphasised a multi-pathway strategy, underlining that internal combustion engine (ICE) technologies still have a vital role to play, particularly when powered by cleaner fuels such as hydrogen, biofuels, and e-fuels.

The company's Global President and Representative Director, Motofumi Shitara, said that decades of refined ICE know-how should not be discarded but rather adapted to emerging energy needs. “Electrification is just one of multiple pathways,” he noted, adding that Yamaha will deploy a balanced approach aligned to the energy and infrastructure readiness of individual countries.

EV Plans for India: River Indie-Based Electric Scooter Incoming

Yamaha is preparing to enter India’s fast-growing electric two-wheeler market with its first electric scooter, developed in partnership with Bengaluru-based startup River. The upcoming EV is based on the River Indie, a robust, feature-rich electric scooter often dubbed the "SUV of electric scooters" for its practical, utility-focused design.

The company has made strategic investments in River to not just tap into local EV innovation but also expand its EV ecosystem in India. Yamaha believes that partnering with agile local startups will help "unearth new opportunities" in what is expected to become the world’s third-largest EV market. Test mules of the River-based Yamaha scooter have already been spotted, suggesting a launch is imminent.

A Global, Adaptive Strategy

The Integrated Report 2025 outlines Yamaha’s firm belief that no single solution will suit every country. Shitara acknowledged that each market faces unique challenges, be it infrastructure, consumer behaviour, or policy frameworks. Hence, Yamaha's products will be tailored accordingly — electric where possible, hybrid or ICE with alternative fuels where practical.

This mirrors a larger trend across global automakers, who are shifting from a one-size-fits-all EV strategy to a more nuanced portfolio that includes hybrid, hydrogen, and biofuel-powered options. For Yamaha, it's a future that blends flexibility, adaptability, and technological continuity.

Value Innovation Factory: Yamaha’s Digital-First Manufacturing Shift

Yamaha isn’t just evolving its products — it's reinventing how it builds them. The company introduced a forward-looking manufacturing initiative called the Value Innovation Factory (VIF). The project aims to train over 800 employees in digital transformation tools over the next three years, blending theoretical value-based production models with smart manufacturing practices.

By digitizing and streamlining its supply and production chains, Yamaha aims to create a "demand chain" — where consumers can get what they want, when they want it, with minimum delay or disruption.

Shitara also touched on the increasingly complex global business environment, citing challenges like U.S.-China trade tensions, workforce shortages in Japan, and growing geopolitical risks. In response, Yamaha plans to revamp its business and management strategy, focusing on agility, resilience, and real-time decision-making.

What This Means for India and the World

Yamaha’s balanced approach could be crucial for countries like India, where EV infrastructure is still developing unevenly across regions. By supporting both electric and ICE innovations, Yamaha can stay relevant across urban centres with EV charging access and rural areas where ICE still dominates.

At a time when many OEMs are betting the house on electrification, Yamaha’s diversified strategy offers a refreshing counterpoint — one that acknowledges market realities while still chasing a green future.

As the company gears up for its India EV debut and lays the foundation for a flexible, multi-energy portfolio, Yamaha is signalling that the road to carbon neutrality may have more than just one lane — and it intends to travel them all.

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Yamaha to Pursue Multi-Pathway Strategy, Not Just EVs, in Global Carbon Neutral Push