Honda Motor Co., Ltd. and Yamaha Motor Co., Ltd. have begun discussions toward a possible business alliance in the Japanese market in the "Class-1 category*" which include scooters with a 50 cc engine or electric motor.

As a result of the diversification of the types of short-range transportation, including power-assisted bicycles and mini-vehicles, the market for the Class-1 category vehicles in Japan has been shrinking in recent years.

Moreover, motorcycle manufacturers are facing various challenges including compliance with safety standards and emissions regulations that will become more stringent in future years, as well as the pursuit of product electrification.

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