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Hindustan Times
23-05-2025
- Automotive
- Hindustan Times
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
Time of India
23-05-2025
- Automotive
- Time of India
"Difficult for OEMs to guarantee EV battery if customers...": Honda explain swapping approach
Honda explains battery swapping approach for Activa e: Honda celebrated a momentous milestone this week as it completed the production of 500 million two-wheeler units globally. Last month, the company had clocked production of 70 million cumulative units through HMSI in India. Following the roll-out ceremony of its 500 millionth unit at its manufacturing facility in Vithalapur, Ahmedabad, Honda's senior leadership addressed a roundtable, opening up on their future roadmap for India, electric mobility, and global exports. Honda's Executive Officer and Chief of Motorcycle and Power Products Operation, Minoru Kato, called India a key market as the company exports to over 62 countries. On EVs, Honda took a practical approach, noting that India's EV market is still developing and is around 1.2 million units. They added that growing infrastructure is encouraging more big players to enter. However, battery degradation over time remains a major concern for EV users. 'In India, ICE motorcycles, the customer will own them for more than 10 years, or maybe sometimes for 15 years. On the contrary, EV cannot be maintained for 15 years like an ICE,' Tsutsumu Otani , HMSI President & CEO, said. 'Battery performance starts to deteriorate after 5 years. And then the customers have to replace those EVs with new EVs… or they can replace the battery only.' He then illustrated the potential for growth with the example of smartphones, saying, 'Or they (customers) can replace the battery only. And we think that if customers are willing to accept that replacement cost, then the EV market will grow.' Plans of new EV models, capacity expansion Honda has plans to roll out one electric model every year. However, specifics regarding which markets each model will enter are yet to be finalized. In terms of future manufacturing plans, Honda confirmed that its EV-dedicated plant will come up near its third plant in Narasapura, near Bangalore. This will support its EV roadmap and scale-up efforts over the next few years. Why the swapping approach for Activa e? HMSI recently launched the Activa e electric scooter in India, which runs on two swappable batteries. Alongside it, the brand also introduced the Honda QC1, an EV with a fixed battery setup. To support its swappable battery model, Honda also rolled out e:Swap - a battery-swapping service. This allows users to exchange their depleted batteries for fully charged ones at authorised swap stations. At present, the company is only offering this service in Bengaluru, Delhi, and Mumbai, with 204 exchange stations and 417 units of the Power Pack Exchanger e: deployed. Explaining this approach, Honda acknowledged that not having the option of home charging could be inconvenient for many users. Instead, with swapping, the batteries remain the property of Honda, not the customer. This way, even if a battery degrades over time, the user doesn't bear the long-term risk or cost. Otani explained that this way, the customer still retains value, even if the battery is depleted. According to him, for OEMs, it's tough to guarantee battery life when charged at home. That said, the company is currently betting big on battery swapping technology with the Activa e:, thereby taking complete responsibility for battery health and performance through its network swap stations. However, the OEM is also keeping a close watch on market preferences and is open to introducing models with home charging capabilities if the demand grows. One such offering already available is the Honda QC 1 . While it doesn't match the Activa e: in terms of range or features, it serves as a practical alternative for those seeking a home-charging solution. It comes with a 1.5 kWh fixed battery that delivers a range of 80 km. It can be charged at home using a 330W off-board charger. Discover everything about the automotive world at Times of India .
Hindustan Times
20-05-2025
- Automotive
- Hindustan Times
Honda banks on India to power its global electric two wheeler market leadership bid
Toshihiro Mibe, Honda Director, President, and Representative Executive Officer, highlighted India as crucial to reaching the target of gaining the top spot in global electric two wheeler sales Check Offers Japanese vehicle maker Honda has announced its ambition to lead the global electric two-wheeler market. The company began its EV journey with the launch of the Honda Activa e and Honda QC1, both unveiled in India last year and officially launched in February 2025. Expanding its global EV footprint, Honda also introduced the Honda Icon e: in the Philippines and several other Southeast Asian countries. Meanwhile, the Honda CUV e: is set to go on sale in Europe and Japan, marking the company's debut electric two-wheeler in those regions. Toshihiro Mibe, Honda Director, President, and Representative Executive Officer, highlighted India as crucial to reaching this target. With India being a strategic place for a new electric two-wheeler factory - which will be built in Karnataka with production set to begin by 2028 - it will be a central hub in Honda's overall EV approach. Also Read : Honda to open new dedicated electric two-wheeler plant in India by 2028 The operations in the factory will include component modularizing across Honda's upcoming electric models to achieve cost savings and efficiencies. Honda had also confirmed earlier that the products made in the new dedicated facility in India will be exported to several global markets Honda plans to develop EVs on dedicated platforms and to manufacture them at its new high-efficiency plant in India. This will allow the company to create electric two-wheelers at lower prices, reinforce the business structure, and eventually take the top position in the global electric two-wheeler market. The new EV plant will produce electric two-wheelers sharing commonised components across multiple models Honda global motorcycle sales For the fiscal year ending March 31, 2025, Honda had record sales of 2.057 crore motorcycles, representing around 40 per cent of the world market. Additionally, the two wheeler maker achieved its highest ever sales across 37 countries. Honda anticipated that motorcycle demand is set to increase, especially in the Global South, such as India, where rising incomes and a growing population fuel market growth. Global two wheeler sales are set to increase from 5 crore units to 6 crore units per year by 2030, the company noted. Also Read : Honda Rebel 500 launched in India with a price tag of ₹ 5.12 lakh. Check details In response to this opportunity for growth, Honda plans to launch products that meet various global needs, enhance ICE model fuel economy, add flex-fuel vehicles, and accelerate the electrification of its two-wheeler range. Honda's goal is to have a global market share of 50 per cent by 2031, with an over 15 per cent return on sales (ROS). Check out Upcoming EV Bikes in India. First Published Date: 20 May 2025, 11:06 AM IST
