Yamaha Motors joins hands with Brose to aptly serve the European e-bike market

A strategic yet surprising agreement occurred in late March 2025 between Berlin-based Yamaha Motors and a German automotive part manufacturer, Brose. This agreement was for the acquisition of the German company’s bicycle drive unit (eKit) as Yamaha Motor Europe’s subsidiary to expand their business within the continent. However, the agreement shall be officially finalised by June 2025 as it is yet to be approved by the antitrust authorities.

Image source: Yamaha Motor Europe

As of 2024, the share of Brose was at 7 per cent with respect to the market condition of the European e-bike motor. If compared, Yamaha Motors Europe only held a 5 per cent share within the e-bike motor European market. With this agreement, the motor company gained an advantage to start the operation of Yamaha Motor eBike Systems (YMESG) scheduled to begin its operation in June 2025.

Although Yamaha majorly operates in Japan, however, the new sister company shall solely focus on serving the European market based on market needs. The motor company also established a new drive unit for the assembly line at the factory in Saint Quentin, France, in March 2024. The reason for setting up this unit is to supply its European-based e-bike manufacturers with the parts in a short time.

The vision of the motor company lies in the interest of building an operation that is capable of meeting customer demands in Europe as well as developing a clientele base. Additionally, this creates a golden chance to grasp the European e-bike market, improve their procurement competencies and drive after-sales service expertise.

This acquisition shed light on Yamaha Motors Europe’s long-term growth trajectory by securing the desired competitive advantage. Besides this, it shall bring the organisation to draft its new medium-term Management Plan, as already announced in February 2025. At present, with the focus on the agreement, both companies are closely working together, ensuring a smooth transition.

The parts manufacturer has been developing and selling their eBike drive back in 2014, but the company in December 2024 announced their low sales growth, which is anticipated to continue till 2027. Coming to an agreement with the motor company shall provide the part manufacturer with the opportunity to focus on their core business.

In a statement released in December 2024, the Brose Company stated, “Our indirect personnel costs have increased massively over the last ten years and are more than twice as high as the wage costs of the production employees. As a family business, we have only limited access to the capital market and must therefore finance its corporate development from its own resources.”