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Transforming mindsets and sharpening key functions are at the heart of Yamaha's reforms, with CEO Shitara stressing the need to focus on the basics rather than gimmicks. Exclusive It's free content, simply login/signup to unlock Get in-depth Industry Insights and Analysis through our “Exclusive” content, presented to you by our esteemed panel of writers, for free By continuing, you agree to the and . This same account can be used across all ET B2B portals. Highlights Yamaha to push sweeping organisational and structural reforms as business uncertainty rises. Marketing gets top priority, with Yamaha shifting from product-led thinking to market-driven strategies. Yamaha expects tariffs to hit harder in 2026, while pursuing cost reforms and regional premium-bike growth. Since he took charge as President, Chief Executive Officer, and Representative Director of early last year, has been focusing on organisational and cultural change and implementing structural reforms across the various businesses. However, there have been stiff headwinds to contend with, from the ongoing war in West Asia to the wild uncertainty around tariffs imposed by the US. In this challenging business environment, “simply building on our existing methods and systems will not be enough”. Advt On the other hand, contends Shitara, must face reality head-on by undertaking a sweeping review of its organisational framework and corporate/business structure, and moving forward with reforms. “We have moved from the preparation to implementation phase, but I think it will take a little more time for results to appear. Although management conditions remain highly uncertain in fiscal 2026, we will steadily conduct reforms to become a strong, robust company that adapts quickly to change,” he notes in the Over the last year, the President has been reviewing the organisational framework and examining possible configurations to achieve the prescribed goals. Work began by reviewing the composition of the Board of Directors and then adopting a structure under which three of them have been put in charge of leading manufacturing/procurement, technology and marketing operations. Better coordination In addition to the technology management committee which was already in place, the other two — manufacturing & procurement and marketing management — were created as part of this exercise. The directors responsible for each of these functions participate in all three committees to strengthen coordination and pave the way for the next set of measures. “What we are trying to do is not something gimmicky or unconventional but rather something quite basic,” says Shitara, who had spearheaded operations in India some years ago with the premium two-wheeler strategy. Advt In the past, the silo approach at HQ in Japan made it difficult for employees to take ownership of the problem as a companywide issue. “From now on, we can thoroughly investigate the causes when targets are missed and our marketing, manufacturing and technology departments work together to come up with measures. Rather than jumping ahead to talk about the future, we must first face what is happening right now,” he adds. In addition, specialisation by role has been increasing at companies everywhere in recent years, which means that employees who can oversee the entire value chain have become rare. “I also recognise the critical need to develop management talent capable of facilitating problem-solving across organisational boundaries,” says Shitara. Top focus on marketing Among the three functions, marketing requires “the most extensive reforms” where the need of the hour is to move away from traditional product-oriented ideas and link sales strategies with market needs. “To do so, we must accurately grasp changes in our markets/customers and spell out how we plan to boost sales,” he continues. In the process, Yamaha expects to see “a new kind of chemistry” emerge from bringing a fresh perspective to other businesses. The next step could perhaps involve making changes at the regional levels which might spawn some interesting dynamics. Shitara's other priority is to transform the mindsets of management and frontline employees. As he puts it, the bigger a company grows, the easier it is for an atmosphere to set in which people protect their own domains and are hesitant to venture into new ones. “However, to truly strengthen a company, every employee on the front lines must view matters as companywide issues and be able to freely discuss what needs to be done with others,” he says. To that end, Yamaha launched a corporate culture reform project in March this year, selecting 24 participants across all operations, ranging from junior employees to middle management. The idea was to foster perspectives that could galvanise the entire company's focus—including those in the field as well as on the front lines—and cultivate among them the ability to offer suggestions proactively. This, according to Shitara, will contribute to the development of future management talent. Improving empathy levels “We also need to incorporate into our management the sensitivity that allows us to grasp the latent expectations of markets and customers as well as what motivates employees in their work,” he adds. The goal is to develop people capable of both traits and define more clearly what it means to create ‘kando' (a Japanese term which means deep emotional satisfaction and intense excitement). Since 2025, Yamaha has had all its new employees watch the Suzuka 8 Hours, the annual motorcycle endurance race. “Anyone who works at Yamaha Motor should begin their career by getting to know the soul of the company. With this in mind, we organised this race-viewing event to help new employees understand the core of Yamaha not just through words but through the experience itself,” says Shitara. Under the scorching sun, everyone wore the same Yamaha Motor uniform and shared the experience of watching the machines, riders and team members push themselves to the limit for eight hours. “The Kando and the unique spirit of Yamaha Motor that they felt firsthand became a personal experience they could share with family and friends,” he recalls. As for the business environment, Yamaha sees an “even greater impact” from tariffs in 2026 than there was in 2025. Demand remains weak due to economic uncertainty, with sales in the US falling short of original projections. In response, the company kicked off cost structure reforms across all its businesses in 2025. “In particular, we are working to improve the profitability at our US bases which we expect to largely offset the effects of tariffs. Over the medium to long term, we will establish a profit structure that is not dependent on topline growth,” reiterates Shitara. Growth plans across regions For this fiscal, Yamaha intends to increase revenue and all levels of profit significantly year on year through pricing strategies and cost structure reforms, in addition to increased sales in its core businesses. The motorcycles business itself remains stable overall, and the company will pursue its premium model segment strategy across each region, which will mean incorporating even more technologies to set its products apart. As for electric vehicles, Shitara believes the multi-pathway approach is the best way forward to reach the final destination. “Once the challenges around charging infrastructure, maximum range, product pricing and government subsidies are settled, the path toward EV adoption will become clearer. Over the short to medium term, the optimal solution will differ depending on the region,” he elaborates. For two-wheeler power units, along with the issue of selecting the optimal battery type, different cell configurations can dramatically increase the flexibility of power output characteristics. This makes it essential to identify common technical requirements for handling such units. Moreover, when selecting partners, it is important to have a clear idea of how much to keep in-house and what should be done with external collaborators. “We have been involved in the EV sector in India for some time, and announced two electric scooter models for the Indian market in 2025. We will continue looking ahead as we use our time efficiently to build technological advantages,” signs off Shitara.

RL Ravichandran, a former marketing veteran of Bajaj Auto and part of the team that conceived Pulsar 25 years ago, shares some interesting nuggets