In April, 2023, Yamaha introduced the NEO’s electric scooter for the European market. This scooter was designed to provide convenient urban mobility and was classified as an electric moped. Unlike motorcycles, the NEO’s did not require a motorcycle license but could be ridden with a standard car or B license.

Initially, there were plans to launch the Yamaha NEO’s in India, which has the largest motorcycle market in Asia and is known for its innovation in electric mobility. However, the Indian government recently reduced subsidies for electric vehicles, causing prices to increase for end users. This made the NEO’s too expensive to be competitive in the Indian market, leading Yamaha to reconsider its launch plans.

Eishin Chihana, chairman of Yamaha India, explained that Indian consumers have different needs and preferences when it comes to electric vehicles. While economic value is a major motivation for purchasing electric vehicles in India due to high fuel prices, Yamaha customers also value style, performance, and aspiration. As a result, Yamaha decided to develop a new platform specifically tailored for the Indian market that would offer an exciting, stylish, and sporty scooter.

By localizing production and optimizing the model’s performance, Yamaha aims to reduce costs and better meet the needs of the Indian market. The development of this new platform has been underway for some time, and the company expects the model to be unveiled within the next two to three years.

Yamaha faces tough competition in India’s electric scooter market, which includes impressive offerings such as the Ola Electric S1 and Ather 450 X. These scooters offer excellent range, performance, and features at an affordable price, making them popular among commuters and enthusiasts.