SPECIAL FEATURE 06
Exploration as a Sound Expert of the Automotive Sound System Market, a New Growth Field

Strategy for Entering the Automotive Sound System Market that Emphasizes Flexibility

The Electronic Devices Division launched its automotive sound system project in 2016, a time at which there was considerable commotion in the automotive industry with regard to the changes brought about by trends such as electrification and the development of automated driving technologies. “I remember thinking about how the comfortability of vehicle interiors would be something people cared more about in the future. I saw it as a prime opportunity for Yamaha, with its technical insight pertaining to acoustics environments,” recounts Nobukazu Toba, leader of Yamaha’s electronic devices operations since 2016. “Up until then, we had been proposing sound quality improvement measures for cars using our semiconductor signal processing technologies. However, I felt that we were reaching the limits of the acoustics experiences we could supply through this approach, and that we would need to propose integrated solutions that encompass everything from semiconductors to amplifiers, speakers, and other output devices if we hoped to surpass these limits.”

　Yamaha has a long history in home and professional audio products, and the Electronic Devices Division has been selling automotive semiconductors for more than three decades. Regardless, supplying automotive sound systems to automobile manufacturers meant that the Company would have to start from square one, indicating just how daunting this task would be. Even after Yamaha announced its late entry in the automotive sound system market, it faced challenges as potential customers were not receptive toward its offerings. Seeking to overcome this challenge, Yamaha turned its eyes to China, where EVs were evolving at a rapid pace. Mr. Toba explains, “Chinese automobile manufacturers were really motivated to differentiate their products by working in new features. This is why I thought we had a chance to get into this market if we could propose new sound or other functions.”

　Chinese automobile manufacturers must be supplied with products manufactured in China. However, Yamaha did not have a factory in China that could manufacture automotive sound system products with the required quality. To address this issue, we employed a fabless production model that involved outsourcing manufacturing to local partners with outstanding track records. “Building a factory requires significant time and upfront investment,” explains Mr. Toba, stressing the rationality of this decision. He continues, “It was the best option to emphasize developing a flexible business while taking advantage of Yamaha’s competitive edge.”

Expression of Vehicle Concepts through Sound

Development diligently moved forward through a process of trial and error led by a team of members of our development, technology, sales, and customer experience staff, eventually culminating in the creation of sound quality and functions that we could proudly propose to automobile manufacturers. “We sought to produce a level of sound quality that was unparalleled, something that would truly grab listeners,” explains Tsuyoshi Okami, group manager of Technology Development Group responsible for the project. Nansu Sakaguchi, group manager of Sales Group, chimes in, “You can never forget the moment when a customer falls in love with Yamaha after listening to the sound we produce and understanding the depth of the experiences we provide.”

　Production Group manager Soichi Tsujikawa elaborates, “We needed to differentiate ourselves from rival automotive sound system brands. Accordingly, rather than just trying to convince automobile manufacturers to adopt the type of sound Yamaha provides, we took an approach of engaging in co-creation with manufacturers right from the planning stage, to help them craft the end user experience they sought to deliver.” He continues, “We strived to use Yamaha’s technologies and sensibilities, which make it possible for us to authentically reproduce the sounds and tones of music inside a vehicle, to propose the ideal sound that matched the specific concept for each vehicle.”

　With a completed demo vehicle in tow, the project team made multiple trips across China, traveling from Shenzhen in the south to Beijing in the north. Members from Chinese sales subsidiary Yamaha Music & Electronics (China) Co., Ltd., supported the team throughout this process. The demo vehicle generated a positive response from numerous automobile manufacturers, and some seeking new value propositions even decided to adopt Yamaha’s automotive sound system, starting us down the path toward growth on which we continue until today.

Exploration of this New Growth Field through Teamwork

The new field of automotive sound systems had incredibly high standards for quality. Developing the products and mass production systems that meet the high standards necessary for entering this field was one of the most challenging undertakings in Yamaha’s long history as a comprehensive musical instruments manufacturer. The key to our success was teamwork that blurred the boundaries between organizational functions. “As a new entrant to the automotive sound system market, Yamaha had to carve out its share from other companies. This meant that we could not wait to talk to customers before making our move,” explains Mr. Sakaguchi. Elaborating, he adds, “We had to adopt the perspective of the customer to formulate hypotheses about what will seize the hearts of customers. There was a need for us to discuss and pool our knowledge from a variety of angles to draft proposals based on such hypotheses.” Mr. Tsujikawa reflects on the process, “Tuning specialists lent us their expertise in the speaker development processes. Members from the sales team also got involved to discuss the types of sound that customers sought. The process of collaboration between members with various backgrounds brought with it a range of new discoveries, ultimately helping us to create new value.”

　The frameworks for maximizing the performance of the cross-organizational team were developed alongside the development systems. “When developing a new business, we cannot just assume that everyone is on the same page,” recollects Mr. Okami. “The first step we took was to build a shared understanding among team members. Then, we organized tasks and determined who would do what. As we moved forward, the process only got smoother.” Mr. Okami continues, “No matter the size of a company, it is rare to have the opportunity to take part in developing a new business. I was extremely excited to be a part of this massive undertaking, the likes of which only comes around once in a person’s career, if at all. This feeling of enthusiastic excitement was shared among the team members, and this is what drove us to practice strong teamwork and chase lofty ambitions.” The electronic devices business was one in which it was rare to see the Yamaha brand. As such, the opportunity to contribute to Yamaha’s brand value was a major source of motivation. This sentiment was expressed by Mr. Okami, Mr. Sakaguchi, and Mr. Tsujikawa alike.

Provision of New Experience Value for End Users

Since entering the market, Yamaha’s automotive sound system business has enjoyed smooth, ongoing growth. We have continued to build our track record in this business, and, as of March 31, 2024, Yamaha automotive sound systems have been employed in a total of 15 models of automobiles produced by Chinese and Japanese manufacturers. Development of next-generation vehicles is incredibly competitive, and the pace of development is always accelerating. Mr. Toba explains the necessity of innovation to achieving ongoing growth in this market, “There is no denying the importance of constantly evolving the functions of your hardware. At the same time, however, we need to continue to propose features that offer new experiences to end users. Yamaha has signal processing technologies for controlling acoustics environments as well as proprietarily developed processors and automatic tuning tools for supporting these technologies. This is why we are able to furnish swift and flexible responses to customers’ needs.”

　One unique Yamaha innovation used in this field is Music:AI (See table below), an AI-powered in-vehicle acoustics optimization technology announced in April 2024. This technology delivers unprecedented acoustics experiences by tuning acoustics parameters based on real-time analyses of the music being played in vehicles. Increases to the number of speakers in a vehicle can result in a sharp rise in the amount of time needed for sound tuning, placing pressure on development cycles. The optimization functions of Music:AI, however, make it possible to reduce development processes and shorten development periods, a feature that has won high praise from customers.

　In an era where rapid technological process drives great changes in the operating environment, foresight for predicting changes is imperative. Mr. Okami underscores this importance, “Yamaha’s survival in the automotive sound system business hinges on its ability to provide cutting-edge acoustics experiences that its rivals cannot mimic. I am always thinking about how far in advance to predict, how much development we can achieve ahead of time, and how to tie these efforts to better proposals for customers.”

Social Value Created by the Automotive Sound System Business

Automobile manufacturers are aggressively pursuing carbon neutrality. As a partner to these companies, Yamaha is compelled to contribute to improvements in fuel efficiency and reductions in CO₂ emissions by decreasing amp power consumption and speaker weight. We are also dedicated to using our technical insight pertaining to sound to create social value. In terms of safety and peace of mind, there are some vehicles currently in mass production that already feature systems for delivering a more tactile sense of speed by playing a driving sound when the driver depresses the accelerator pedal and in conjunction with vehicle speed. In addition, Yamaha provides high sound quality communication modules for use in its e-Call emergency reporting systems, which are being adopted on a global scale and expected to become a standard feature on next-generation vehicles. These modules have been employed by domestic and overseas automobile manufacturers for use in an increasingly wide range of vehicles.

　Furthermore, as Mr. Toba explains, “Yamaha is in the process of developing driving support technologies that adjust the position from which alert noises are heard by drivers based on the position and movement of the vehicles, pedestrians, or other things that might have prompted said noises. We hope to support safe driving with technologies that use audio input to complement visual input in order to help drivers more quickly identify dangers.”

Pursuit of Growth in New Markets

Yamaha is ramping up marketing activities in the United States, India, and Europe in pursuit of ongoing growth for its automotive sound system business. “Rival brands currently dominate the U.S., Indian, and European markets, but I am sure we can still find customers who are interested in adopting advanced new technologies, whether they come from an existing supplier or from a new source,” explains Mr. Toba. Looking forward, he continues, “We are exploring ways of approaching these new markets, now that we have built a respectable track record in China and Japan. If we are not able to approach these markets alone, we may team up with partners whose functions complement those of Yamaha to drive the swift expansion of our business.”

　Mr. Toba expresses his confidence for the future of Yamaha’s automotive sound system business, “Yamaha is mustering its accumulated sound expertise to create the acoustics environments that automobile manufacturers desire. As we develop our business, I can feel the high expectations that customers have for Yamaha’s potential as a sound expert. I am confident in the growth potential of our automotive sound system business and dedicated to growing this business by capitalizing on Yamaha’s unique, collective strength.”