India Yamaha Motor catering to evolving Gen-Z customers: Senior VP Ravinder Singh

Yamaha bets big on youth: The iconic Yamaha brand of motorcycles is betting big on innovation to cater to the young population in India. In an interview  Ravinder Singh, Senior Vice President, Yamaha Motor India Sales tells Republic Business that apart from trend-setting metro cities, the brand is also keen to reach out to Tier-2 and Tier-3 cities of the country. 

Q) How is Yamaha staying relevant to the evolving customers, particularly the Gen-Z?

A) India Yamaha Motor effectively caters to the evolving Gen-Z customers through a multifaceted approach. Firstly, Yamaha is continuously taking efforts to strengthen its product portfolio in the premium segment by upgrading the existing product range with refreshing colors, latest technology and features and also by introducing models in the higher displacement engines. Secondly, Yamaha is also expanding its network of Blue Square Outlets, which embodies Yamaha’s racing heritage and offers an exclusive portfolio featuring flagship models like the R3, MT-03, and Aerox 155. In addition, these showrooms also house other premium motorcycles from the brand’s portfolio including the YZF-R15 V4, MT-15 V2, FZS-Fi series, FZ-X, and popular 125cc scooter models such as the Fascino 125 Fi Hybrid and Ray-ZR 125 Fi Hybrid. 

Lastly, the brand campaign “The Call of The Blue” resonates with the youth, emphasising Yamaha’s racing heritage, fuelled by passion and performance. Under the brand campaign, we organise several customer engagement activities like Track Day, Overnight Tour, COTB Weekend  which helps us remain connected with our target customers and also propagate the brand’s core competencies that is Exciting, Stylish and Sporty. Additionally, Yamaha is aggressive in digital media promotions and runs dedicated campaigns suited to the taste and preferences of young customers in India.

Q) Are you witnessing a rapid shift of customers to the premium segment motorcycles? If so, what are the factors driving this change?

A) The premium motorcycle market in India is undergoing significant transformations. Manufacturers are now emphasising on introducing higher engine capacity bikes of 150cc and above, meeting the demand for sporty, performance oriented and fashionable motorcycles. Recent launches align with this trend, resulting in a strong 25 per cent year-on-year growth in the premium segment in the first quarter of CY 2024.

Yamaha has also been progressively expanding its lineup in the higher engine capacity categories, marked by the debut of its initial 300cc bikes—the R3 and MT03, in December 2023. This new set of wheels caters to both existing customers seeking upgrades and new buyers drawn to sporty and stylish motorcycles. Furthermore, the company also plans to introduce newer step-up models in an attempt to expand its portfolio and cater to a larger set of discerning customers. 

Young riders aged between 18 and 25 are the main drivers who are enabling this change, to highlight their mature choices and express their personalities. Additionally, the growing economy, infrastructure development, urbanisation, increasing disposal incomes are also some of the factors driving this change. Hence, the strategic focus on premium motorcycles will continue to draw newer customers to the showrooms, key to sustaining the growth momentum. 

Q) Is the trend the same in tier II and tier III markets? What is Yamaha's plan to capture these markets?

A) Customers in Tier II and Tier III cities have been expressing mature choices and with the wider availability of information, these customers are quick to adopt themselves to the current market trends and contemporary choices. With an increased focus in the hinterland markets, manufacturers are enhancing their growth stories. 

Yamaha strategically targets Tier-II and Tier-III markets, catering to customers who seek performance-oriented and aspirational products. The presence of the brand across major cities and towns, along with the rich legacy, makes it to the consideration sets of buyers. The brand also engages with its customers in these markets through initiatives under the ‘Call of the Blue’ campaign, such as Call of The Blue Weekend, Overnight Tours, Mega Mileage Challenges, and Blue Streaks Rides, to elevate the brand experience of customers here. 

Q) What is your current production capacity? and with the rising demand are you planning to increase it?

A) India Yamaha Motor (IYM) operates its manufacturing facilities in Chennai and Surajpur, boasting a cumulative production capacity of 1.50 million units for scooters and motorbikes. Last year, the company sold approximately 8.6 lakh units, out of which 2.1 lakh units were exported. In the current year, Yamaha aims to sell one million units, including exports of 2.5 lakh units. As of now, the focus is to utilise full capacity of our manufacturing units to meet the rising demand of consumers. We will closely monitor the sales growth in coming years and execute our plan in terms of capacity expansion.

Q) How is Yamaha planning to expand its current network to cater to a larger audience?

A) At India Yamaha Motor we are committed to enhance our network to reach the last mile customer. Currently, Yamaha has close to 2,000 touch points across India. In line with the ‘Call of the Blue’ campaign, we have already achieved the milestone of setting up 330 Blue Square Outlets in the country and by this year end, we aim to add another 120 outlets. Blue Square Showrooms are designed to help customers realize and connect with Yamaha’s Racing DNA, while also enabling them to experience a sense of pride of being associated with a premium brand. 
Setting up Blue Square showrooms across India, is a key part of our vision to create a benchmark in terms of sales, service, and customer satisfaction. We are aiming to accelerate the expansion of Blue Square outlets to serve every Yamaha customer in India. In the long run, this will ensure that riding enthusiasts get the distinguished experience they deserve from a globally renowned brand like Yamaha.