Why HMSI is in wait-and-watch mode on EVs before scaling up
Gujarat: As India's electric two-wheeler market heats up,
Honda Motorcycle & Scooter India
(HMSI) is opting for a wait-and-watch strategy, as it sees 2025 as a pivotal year to gauge whether the market will grow or stagnate. This cautious approach is despite its recently announced plans to set up a dedicated EV manufacturing plant within the premises of its existing third facility in Karnataka by 2028.
A late entrant to the EV market, the Japanese automaker launched its first two models– the Activa e with swappable battery and QC1 with fixed battery– this year. Although the entry has been slow, the company's leadership team remains committed to a steady pace with the ultimate goal of winning the race.
Speaking to reporters in Japanese with English interpretation, Tsutsumu Otani, Managing Director, President & CEO of HMSI, acknowledged that startups pioneered the EV market in India, while legacy companies like TVS Motor and Bajaj Auto are now driving volume growth. However, he noted that despite increasing sales for these OEMs, the overall market has not grown to a significant level. This is because the EV customers are primarily drawn by incentives and the cost advantage over gasoline vehicles. However, if they stop perceiving these benefits, the market may begin to shift, Otani added.
For the year ended March 2025, EV penetration in India's domestic two-wheeler market stood at 6 per cent, with sales rising to 11.49 lakh units from 9.48 lakh units the previous year. Bengaluru-based Ola Electric led the segment, while TVS and Bajaj fiercely competed for the second and third positions, surpassing Ather Energy and Hero MotoCorp.
Battery replacement cost
Otani also drew parallels between the lifecycle of ICE and battery-powered vehicles. While ICE motorcycles typically last 10 to 15 years, EV batteries start to degrade after about five years. At that point, customers must either replace the battery or the entire vehicle, much like upgrading a smartphone. If consumers are willing to accept the cost of battery replacement, the EV market could continue to grow, Otani explained.
Though, he reiterated, it is still difficult to predict how the overall market will evolve.
He said HMSI is beginning its EV journey at a crucial time and is keen to monitor how incentive trends develop. As the EV market in India enters its fourth year, early adopters will start experiencing battery degradation, marking a key moment when customer perceptions of long-term EV ownership will begin to form.
It is worth noting that the automaker's cautious approach also led to its phased expansion strategy for EVs. Currently, the Activa e is available only in Bengaluru and is yet to gain significant traction. The next planned launches, guided by the availability of battery swapping stations, are targeted for Delhi and Mumbai. The EV models are being sold through existing Red Wing dealerships.
Honda, which sells scooters with swappable battery technology in Japan and Indonesia, has partnered with OMC Power to support battery swapping infrastructure in Indian cities.
Globally, Honda plans to develop both swappable and fixed battery models, launching at least one new model each year starting in 2026. However, the company has not disclosed how many of these will be introduced in the Indian market.
Striving for domestic market leadership
In India, the company's EV journey contrasts with its long-standing goal to lead the domestic two-wheeler market. Having held the No. 2 position for years, the automaker aims to surpass Hero MotoCorp this fiscal year.
To support this ambition, the two-wheeler maker has announced an investment of ₹920 crore to build a fourth production line at its Vithalapur plant in Ahmedabad district, Gujarat. Scheduled to be operational by 2027, the new line will produce 125cc motorcycles and add an annual capacity of 6.5 lakh units, increasing the plant's total capacity to 26.1 lakh units.
'We are aiming for No.1 market share in India by creating a production environment that meets the needs of the world's largest market of 20 million units,' the company said in its official statement.
The increased capacity will also support the company's goal of making India its export hub.
HMSI, which began production in India in 2001, currently operates four manufacturing plants across the country, including facilities in Manesar (Haryana), Tapukara (Rajasthan), Narasipura (Karnataka), and Vithalapur (Gujarat).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
10 minutes ago
- Time of India
Peak XV trims stake in Zinka Logistics in Rs 302 crore bulk deal; ADIA, MIT among buyers
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Bengaluru-based logistics tech company Zinka Logistics Solutions , popularly known as BlackBuck, witnessed a block deal on Tuesday. A group of marquee institutional investors picked up stakes, while existing investor Peak XV Partners pared down its holding. The total block deal value is around Rs 302 to data from the stock exchanges, nearly 59 lakh shares changed hands. Among the buyers were global institutional names such as Abu Dhabi Investment Authority (ADIA), ICICI Prudential Mutual Fund, and Massachusetts Institute of Technology (MIT).ADIA purchased 23,02,574 shares at a price of Rs 420 per share. ICICI Prudential Mutual Fund acquired 11,42,856 shares at the same price, while MIT picked up the largest chunk -- 24,65,945 shares -- at Rs 420 per the sell side, Peak XV Partners Investments VI offloaded 12,10,588 shares at a higher price of Rs 444.71 per share, likely booking gains on their earlier of the latest available data, promoters held 27.7% of Zinka, while the public held 72.3%. Foreign investors made up a large chunk of the public shareholding, with several high-profile names such as Tribe Capital, Sands Capital, Accel, and B Capital featuring on the largest public shareholder was Quickroutes International, holding over 9% stake. Among mutual funds, SBI Technology Opportunities Fund held 6.62%, while Bandhan Core Equity Fund and Invesco India Contra Fund held smaller Logistics is one of India's leading tech-driven logistics platforms specializing in full-truck load (FTL) freight. Founded in 2015, the company has transformed the traditional trucking ecosystem by digitizing operations for both fleet owners and its mobile and web-based solutions, Zinka connects truckers with businesses in real-time, offering seamless booking, GPS-based tracking, digital payments, and documentation. The platform serves a wide range of industries including FMCG, manufacturing, and e-commerce, providing reliable long-haul transportation across company also assists truckers with services like fuel cards, insurance, and toll management, aiming to improve their efficiency and reduce idle time.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The Print
12 minutes ago
- The Print
In meetings with world leaders, all-party delegations convey India's policy of zero-tolerance towards terrorism
'We can talk to them in Hindustani. We can talk to them in Punjabi. We can talk to them in English. There is no problem in finding common ground with Pakistan. The problem is finding a common vision for decency, for peace. We want to be left in peace, to grow and develop. They don't want to leave us alone. They want to harass us,' he said. 'You (Pakistan) crack down on this infrastructure of terrorism that is visible everywhere in your country. Then, of course, we can talk,' Congress MP Shashi Tharoor, who is leading an all-party delegation to Brazil, said while talking to PTI Videos. Brasilia/Brussels/Cairo, Jun 3 (PTI) All-party parliamentary delegations on Tuesday effectively communicated India's firm message of zero tolerance towards terrorism to several countries, stressing that New Delhi can talk to Islamabad if it takes significant action against the terror infrastructure that is visible everywhere in the country. 'They want to cut us this whole bleeding to death India by 1,000 cuts. They're not going to bleed to death so easily. Better forget that idea,' he added. Asked whether nations have been recognising India's stance against terrorism, Tharoor said his delegation has been to four nations — Guyana, Panama, Colombia and Brazil- so far and 'this has been very clear in all the countries we've been to'. 'I would say in all four countries, we've had a very, clear success, if that's the word, I don't like to boast of success. That's for others to judge. But we have got our message through very clearly, including to those who may have had some misunderstandings,' he said, referring to Colombia. Earlier, Tharoor said Colombia withdrew a statement offering condolences to Pakistan for the loss of lives following Indian strikes in response to the Pahalgam attack after his delegation explained Islamabad's relentless support to cross-border terrorism. The delegation held a highly productive meeting with Senator Nelsinho Trad, President of the India-Brazil Friendship Front and President of the Senate Foreign Affairs Committee. It also called on Amb Celso Amorim, Head Adviser of the Special Advisory to the President of Brazil, and discussed India's position of zero tolerance to terrorism. In London, the delegation led by BJP MP Ravi Shankar Prasad concluded its high-level engagements, meeting with UK government ministers, parliamentarians, party leaders, think tanks, and India friendship groups. The delegation received wide-ranging support, reaffirming shared commitments to global security, justice, and strategic partnership, the High Commission of India in London said in a release. The delegation met Lord Dominic Johnson of Lainston CBE, Co-Chair of the Conservative Party, and Koolesh Shah, Co-Chair of the Conservative Friends of India. 'They voiced strong support for India's fight against terrorism, acknowledged its global implications, and lauded the Indian diaspora's contribution to the UK,' it said. The delegation also met Labour Party India Friendship Groups-including Labour Friends of India, Labour Convention of Indian Organisations, Sikhs for Labour, and Hindus for Labour. The groups expressed unified support for India's anti-terrorism efforts, emphasising the need to dismantle terror infrastructure and curb terror financing. From London, the delegation will travel to Brussels where it will have interactions at the European Union level and with Belgian authorities. In Cairo, Egyptian Foreign Minister Badr Abdelatty Tuesday reiterated his country's solidarity with India in its fight against terrorism and welcomed deeper bilateral cooperation on counter-terrorism during a meeting with the all-party Indian delegation led by NCP (SP) MP Supriya Sule. The delegation, which is here on the last leg of its four-nation trip, also met Arab League Secretary-General Ahmed Aboul Gheit and discussed India's wide-ranging political, economic and cultural engagement with the 22-member bloc. 'Countering terrorism is a priority to both @arableague_gs and India. The delegation underscored India's unified stance and collective determination to combat terrorism,' the Embassy of India in Egypt said in a post on X. Another all-party delegation, led by DMK MP Kanimozhi Karunanidhi, concluded its three-day visit to Spain, where it held a series of meetings with officials and civil society representatives to highlight India's 'zero-tolerance' stance against terrorism. 'The delegation concluded its visit having effectively communicated India's strategic approach and firm message of zero tolerance towards terrorism to Spanish government leaders, lawmakers, civil society and the Indian diaspora, strengthening bilateral ties and mutual understanding,' the Embassy of India in Madrid said Tuesday. In Kuala Lumpur, Malaysia on Tuesday reaffirmed its commitment to peace as it thanked an all-party Indian delegation, led by JD(U) MP Sanjay Kumar Jha, for the briefing on New Delhi's approach to combating terrorism. The delegation met Malaysian leaders and briefed them on India's unwavering policy of zero tolerance towards terrorism, and sought their cooperation in the collective fight against terrorism, the High Commission of India here said in a post on X. The all-party delegation, led by Shiv Sena MP Shrikant Eknath Shinde, concluded a successful three-day visit to Liberia, with both sides reaffirming their commitment to work together in fostering a peaceful, secure, and terror-free world. The all-party group was in Monrovia in the final leg of its four-nation visit to the United Arab Emirates, DR Congo, Sierra Leone, and Liberia. 'The visit not only reflected the enduring friendship between India and Liberia, but also highlighted the two nations' shared, unwavering stance against terrorism. It concluded with both sides reaffirming their commitment to work together in fostering a peaceful, secure, and terror-free world,' the Indian Embassy here said in a release. Tensions between India and Pakistan escalated after the Pahalgam terror attack, with India carrying out precision strikes on terror infrastructure in Pakistan and Pakistan-occupied Kashmir in the early hours of May 7. Pakistan attempted to attack Indian military bases on May 8, 9, and 10. The Indian side responded strongly to the Pakistani actions. The on-ground hostilities ended with an understanding of stopping the military actions following talks between the directors general of military operations of both sides on May 10. PTI GRS/SCY/NSA ZH This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Indian Express
13 minutes ago
- Indian Express
All India-Abu Dhabi traffic rights exhausted, time for aviation authorities to explore expansion of bilaterals, says Etihad CEO
The emirate of Abu Dhabi could be the next Gulf territory to approach India seeking an expansion of the bilateral air services agreement as existing traffic rights have been exhausted by Abu Dhabi-based Etihad as well as India's airlines. According to Antonoaldo Neves, the Group Chief Executive Officer of Etihad Aviation Group, it is time for aviation authorities of India and Abu Dhabi to initiate discussions on expanding traffic rights, also called bilaterals in aviation parlance. While almost all major Indian airlines fly to Abu Dhabi and share the 50,000 seats per week per direction of the traffic rights among themselves, Etihad is the only carrier from the emirate and accounts for all the 50,000 seats in Abu Dhabi's quota. Till one-and-half years ago, both Eithad and Indian airlines had room available to add seats on India-Abu Dhabi routes. In fact, Indian carriers were together utilising just about 30 per cent of the seat quota at the time, while Etihad was using around 50 per cent, Neves said. But within the last one year, both sides have fully exhausted their respective traffic rights. Currently, there is no discussion between India and Abu Dhabi on expansion of bilaterals. 'We have about 170 flights per week. About one-and-a-half years ago, we were using only half of the bilaterals, but now we're using all the traffic rights, and India too. IndiGo added a lot (of flights), and Akasa (Air) added some. IndiGo now is actually flying from 13 cities into Abu Dhabi…I think now we have all the conditions for starting a discussion again about traffic rights, because it's going to be good for the Indian carriers as well as us,' Neves said. The exhaustion of India-Abu Dhabi traffic rights comes at a time when another UAE carrier Emirates has been urging India to increase seats under the India-Dubai bilateral air services agreement beyond the limit of around 66,000 seats per week per direction, but the Indian government appears to be unwilling to lend an ear. Unlike air services agreements with most countries, India's bilaterals with the UAE are emirate-specific. The Indian government and major Indian carriers like Air India and IndiGo have ambitions to have more direct international connectivity from India and to turn the country into an international aviation hub. A significant number of passengers flying to far-off destinations from India take connecting flights through major global hubs outside the country, Dubai and Doha for instance. India wants its carriers to ramp up wide-body operations, instead of facilitating foreign airlines, particularly Gulf-based carriers with deep pockets, in ferrying passengers—transfer traffic from India—to Europe and beyond via their large hubs. Put simply, increasing seats under bilateral pacts does not sit well with India's grand aviation ambitions. Neves, however, said that the concern that large Gulf carriers like Etihad are taking away a lot of transfer traffic from India was unfounded, and that airlines price seats on the basis of demand and their network. He said that the demand is significant enough to accommodate transfer traffic as well as point-to-point traffic. 'The discussion that people always bring is this is transfer traffic and that is point-to-point. I could argue differently and I could say that I would love to get the point-to-point (traffic) that IndiGo is getting to Abu Dhabi…The flipside of that equation is, if I'm doing only transfer (traffic), I'm giving to IndiGo all the point-to-point traffic. My point is that the discussion about point-to-point versus transfer is just a silly discussion. We don't price like that, we price to demand,' Neves said. Neves also argued that being restrictive on seat quotas amid growing demand was not in the interest of Indian consumers. 'If you regulate, it's the start of the end. Because if you regulate, you go back to the old days where fares were controlled. India today has 200 million passengers because fares are not controlled anymore, that's the only reason. Every time you try to put artificial controls, the market doesn't grow,' he said. While acknowledging that Etihad and possibly even Indian carriers may not have the aircraft capacity currently to add additional seats between India and Abu Dhabi, Neves said that they will have more aircraft in the coming years, and the time is apt for discussions on bilaterals to start. 'I think it should be done at the right time, at the right pace. My load factor today is 88 per cent. If I get more seats in India today, first, I need to cancel other flights to bring the planes here. I don't want to do that…So, my point is it needs to go step by step, so we're not in a hurry, but I think we need a dialogue… Of course, I understand that nobody wants to give 10 times more seats tomorrow. And that's understandable, but there's got to be a staggered approach that is good for everyone. It's impossible that there is none,' Neves said.
