Yamaha will build on its strengths this year, says CEO

Hiroyuki Yanagi’s New Year message to shareholders early this week comes at a time when his company is all set to commission a new two-wheeler plant in India.

The President and CEO of Yamaha Motor Company will, in all likelihood, be present for the inaugural of the Chennai facility in the coming weeks. Along with Surajpur, the Japanese automaker will look at producing nearly three million scooters and bikes by 2018. By this time, the Chennai plant will be functioning at optimal capacity.

Yanagi is bound to be particularly interested in India not only because he headed operations here a little over a decade ago. He is also aware that the country is imperative to Yamaha’s two-wheeler business by virtue of its sheer size and the potential it offers. India could become the company’s largest market in the world by 2018, even ahead of Indonesia which is way ahead today. In addition, it will be entrusted with the responsibility of servicing the African market.

In his message, Yanagi says this year will see emphasis on the “pursuit and enhancement” of four aspects of the unique style of Yamaha. Topping the list is originality where the company has presented original concepts through innovative combinations while developing optimal control technology for power sources, vehicle bodies, boats, and airframes. In the future too, Yanagi adds, it will “create and convey value” through new innovations based on market and customer observation and study. The second aspect is technology. “While honing our core high-performance, lightweight, fuel-efficient and compact technologies, we strive to give shape to our passion to exceed customer expectations by blending logic and emotion in our products,” the CEO says. Yamaha, he adds, carefully selects from core technologies to “maximise customer satisfaction and trust” and sets for itself lofty targets.

Design is the next trait where the two-wheeler maker has always emphasised distinctive (design) features such as original styling, attention to detail and fresh colouring.

“We will further incorporate shapes and quality which create an alluring presence, fascinating our customers while expressing and developing refined dynamism,” Yanagi says.

The last item on the list is connections which are forged with customers at every point of engagement with Yamaha.

The company, he adds, will work to convey its passion, generating excitement among customers and creating lifelong connections.

“These four aspects of the unique style of Yamaha will be translated into specific words, and those words then converted into technology, products, and the way we do our work,” Yanagi says.

It is his firm conviction that this (unique) style will become more apparent and easy to understand then. Clearly, the message from the CEO is more than relevant to India where Yamaha has finally got its act in order after years of being on a rudderless ship.

It has rediscovered its mojo thanks to scooters and is now working on the world’s most affordable motorcycle that will be produced in Chennai. Perhaps, going forward, the company could even think of another plant but these are early days yet.

Yanagi is confident that products launched in 2014 convey a “wonderful statement to customers” of the unique style of Yamaha, each epitomising the passion the company pours into its products in a fresh form.

“On the sales front, employees are taking the attitude of not simply repeating past ways, but working diligently to levels above and beyond everyone’s expectations, maximising the fruits of their passion,” he says.

This work has resulted in many examples of success. In the motorcycle business, for instance, Yamaha has begun launching platform models and global models onto the market. In developed markets, distinctive series such as the MT, MAX, R, and YZ, and in developing nations, the next-generation "Blue Core" engine etc are enhancing brand value.