Honda to relook at its electric two-wheeler strategy as it finds Indian market stagnant
The company aims to launch new electric models annually and establish a dedicated EV manufacturing facility in Karnataka by 2028, while acknowledging the continued demand for internal combustion engine bikes. Check Offers
Honda Motorcycle and Scooter India (HMSI), India's one of the selling two wheeler brand, has candidly stated its intention to re-evaluate its electric vehicle (EV) strategy for the Indian market. Minoru Kato, Executive office, Chief officer for Motorcycle and Power Product Operations , Honda Motor Company and Tsutsumu Otani, President and CEO, Honda Motorcycle and Scooter India, argued that while the current EV adoption is seemingly robust, it is primarily an "incentive and fuel-cost reduction" phenomenon, suggesting a deeper understanding of the market's underlying dynamics.
Interestingly, the re-evaluation of EV strategy in India comes at a time when Honda has articulated ambitious global EV targets. The company has recently made its intentions clear to become the number one electric motorcycle player globally. This declaration underscores Honda's long-term vision for electric mobility, despite the current nuances in individual markets. Their global strategy involves a strong push for electrification, with a stronger focus on modularisation, central to which will be India.
Interestingly, while it has not been conveyed directly, this strategic rethink by Honda also hints at its broader, multi-pronged approach to sustainable mobility. In markets like Brazil, Honda has led the way on alternative fuels, selling more than seven million flex-fuel two-wheelers that run on gasoline and ethanol blends. The company has been vocal to replicate this success in India, advocating for clearer policies and incentives for bioethanol fuels. Honda has introduced ethanol-compatible models in India including the Honda CB300F Flex Fuel. This also aligns with the vehicle maker's global ambition of achieving carbon neutrality by 2050 through various sustainable solutions including EVs and flex fuels. Dilemma between battery swapping and fixed battery
Honda Motorcycle and Scooter India (HMSI) was among the last major two-wheeler manufacturers to enter the electric vehicle segment. The company announced its debut electric offerings—the Honda Activa e and the Honda QC1—in November 2024, with market launches taking place in January 2025.
The Honda QC1 mimics the styling on the new Activa e, albeit with more compact proportions
Otani explained that while the electric two-wheeler segment in India has been gaining attention over the past four to five years, it was only recently when the legacy players like TVS with its iQube and Bajaj with its Chetak entered the market. With these models gaining popularity, the segment began showing signs of stability and consumer confidence, encouraging other established players such as Honda to enter the market.
Unlike most legacy manufacturers that have opted for fixed battery systems with home charging, Honda has taken a dual approach. The QC1 features a fixed battery with a home charging option, whereas the Activa e comes equipped with a swappable battery system, with no built-in charging provision.
Also Read : Honda Two Wheelers surpasses 500 million production mark globally
The company believes it is still too early to commit to either technology as the definitive future of electric mobility. Otani highlighted that while a typical ICE two-wheeler remains in use for 10 to 15 years, the lifecycle of an EV currently averages around four to five years, largely due to battery limitations.
According to Honda, the true turning point for electric two-wheelers in India will come in the next four to five years, when early adopters begin to face battery replacements. Only then will clearer consumer preferences emerge—between the ease of fixed battery setups that require costly replacements and the operational flexibility of swappable systems that reduce ownership costs but require access to swapping infrastructure. For now, Honda plans to keep both options open as it observes market trends and consumer behaviour in this evolving segment. India at the core of EV expansion
While Honda Motorcycle and Scooter India (HMSI) continues to re-evaluate its electric vehicle (EV) strategy, the Japanese two-wheeler giant remains steadfast in its long-term vision of becoming the global leader in electric two-wheelers. Honda Motor has been reiterating that central to achieving its ambitious goal is the Indian division, which Honda has repeatedly identified as a key driver in its global growth roadmap as well.
The Activa e looks modern yet has a simplicity that family buyers tend to like. The scooter will age gracefully in the years to come
To support this vision, the company has committed to launching at least one new electric two-wheeler model every year. After debuting its EV journey with the Activa e and QC1 in India, Honda now has four electric models in its international portfolio, including the Honda CUV e for Europe and the Icon e: designed for Southeast Asia.
During a recent global sales briefing, Honda CEO Toshihiro Mibe highlighted the company's focus on modular component strategies to streamline global production and accelerate EV adoption. Reinforcing India's strategic importance, he also confirmed that a new dedicated EV manufacturing facility in Karnataka will become operational by 2028. This facility is expected to boost HMSI's initial EV production capacity to between 20,000 and 30,000 units annually. This will not only cater to the domestic demand but also will act as a key export hub for Honda Two Wheeler's global electric ambition. EVs and ICEs will grow simultaneously
As the electric transition progresses, HMSI is confident in the relevance and continued growth of internal combustion engine (ICE) two-wheelers. The firm is confident that ICE models will have, and continue to have, sufficient demand, especially in segments where electric adoption has not become significant.
Also Read : Honda Rebel 500 launched in India with a price tag of ₹ 5.12 lakh
Honda has emphasized that the motorcycle segment in India still remains largely male-oriented, but identified potential to grow if ICE motorcycles could be developed for female riders. Meanwhile, Honda is positive that its growth trajectory would be led by its scooter range, observing that an increasing number of female customers are purchasing two-wheelers for their personal mobility options.
While the EV emphasis may be increasing, Honda hasn't entirely forgotten about the entry-level motorcycle category, which is a crucial part of its effort to achieve market leadership in India. The Honda Shine 100 and Honda SP125 are key to this goal. The SP125, launched in 2019, and the Shine 100, introduced in 2023, continue to compete directly with the Hero Splendor, the top-selling model from Honda's former joint venture partner.
Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.
First Published Date: 23 May 2025, 15:28 PM IST
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