Yamaha Cancels NEO's Launch Plans In Inda, Developing New Platform Instead

In April, 2023, Yamaha updated the NEO's for the European market. This electric scooter was modeled after an ICE scooter of the same name, and seeks to offer accessible urban mobility. Classified as an electric moped – not a motorcycle – the NEO's doesn't require the rider to have a motorcycle license, but rather, simply a standard car, or B, license.  

At the time of its launch, it was hoped that the Yamaha NEO's was going to make its way outside of Europe, and into the Indian market. As you're probably aware, India is the biggest motorcycle market in Asia, and a breeding ground for innovation when it comes to electric mobility. With a strong thrust towards the accelerated adoption of electric vehicles, it seems that more and more electric motorcycles and scooters are popping up left and right from the Asian country. 

With that said, the Indian government recently rolled back its subsidies towards electric vehicles, resulting in a higher purchase price for these machines when it came to the end users. This lead Yamaha to reconsider its plans of releasing the NEO's, as chances are it would be way too expensive in order to be competitive. 

Yamaha India chairman Eishin Chihana explained in an article by AutoCar India that the Indian consumer has vastly differing needs and views when it comes to electric vehicles. “In India, the biggest motivation is low running costs. With petrol prices being so high, people buy mainly for economic value. That is different from our internal combustion customers who buy our products not only for economical value but buy bikes like the R15 and MT-15 for the aspiration value, style and performance. So we are also stressing on making a product that is exciting, stylish and sporty. That is the value of a Yamaha.” 

As such, in order to keep up with the impressive selection of electric scooters from India's local market, Yamaha will instead resort to developing its own platform suited specifically to the Indian market. With that in mind, it would be better able to reduce costs by localizing production, while at the same time optimizing the model's performance to meet the needs to the market. Indeed, this project has already been going on for some time now, with the company stating that the model is expected to debut within a two-to-three-year timeline. 

It goes without saying that Yamaha, being the established player that it is, has its work cut out. India is home to some of the most impressive electric scooters in the world such as the Ola Electric S1 and Ather 450 X, both of which deliver impressive range, performance, and features, at a price tag that's within reach of a lot of commuters and enthusiasts.