New Delhi: Honda will begin operating a dedicated electric two-wheeler plant in India in 2028.
A wide variety of electric models will be produced here by combining modules that are common for multiple models. Additionally, for batteries, the core component of electric models, Honda has been working with battery manufacturers to establish specifications suited to the characteristics of two-wheelers and ensure stable procurement.
For now, the company is using its Karnataka facility for its electric plans and it is not entirely clear if the plans for 2028 will be housed in this very location or elsewhere. Either ways, it is a strong statement of intent on its electric drive.
The exercise also stems from Honda’s efforts to reduce the total cost of ownership (TCO), which it believes will be one of the challenges associated with the introduction of electric scooters.
The Japanese automaker is striving to sell its electric models in the price range where the “TCO for the three years of ownership will be equivalent to that of ICE (internal combustion engine) models”.
Market leadership
This new facility along with a series of other initiatives will see Honda striving to “capture the largest market share” in India’s electric two-wheeler market. The idea is to offer a wide variety of electric models that accommodate “increasingly diverse customer needs”.
These details were made known at a press briefing on motorcycle business initiatives presented by Minoru Kato, Executive Officer, Chief Officer, Head of the Motorcycle and Power Products Operations, Motorcycle Business Unit. He was also President of Honda Motorcycle and Scooter India during the pre-COVID years when the company had wrapped up its capacity expansion exercise across four facilities.
Along with him was Daiki Mihara, Operating Executive, Head of the Motorcycle and Power Products Electrification Business Unit, Electrification Business Development Operations.
Battery sharing
Apart from Japan, Indonesia and Thailand, Honda has a battery sharing service in India through its local subsidiary, Honda Power Pack Energy India for the further popularisation of electric two-wheeler models powered by swappable batteries.
Coinciding with the market launch of the electric Activa, the company will begin offering the Honda e:Swap, battery sharing service in Bengaluru, Delhi and Mumbai. The goal is to “eliminate users’ anxiety of running out of battery power and offer mobility experience with greater peace of mind”.
Honda also plans to strengthen its after-sales services and maintenance basket by leveraging its network of 6,000 dealerships across India. By introducing more electric models powered by a fixed battery, the company will leverage this network to enhance battery charging locations.
Beyond electric
Beyond electric, Honda is envisioning further growth in global demand for motorcycles and scooters across Southwest Asia, whose largest market is India, as well as Indonesia, the Philippines, Brazil and other Central and South American countries.
With this expected trend, the industry-wide global two-wheeler sales, currently at a scale of 50 million units, is projected to grow to 60 million units by 2030, including electric vehicles.
In order to respond to this market growth and increased demand with certainty, the company will continue introducing more competitive products, pursue carbon neutrality through various measures including electrification and further solidify its two-wheeler business, with a long-term target to capture a 50% share of the global two-wheeler market including electric motorcycles.
In India, Honda has been “building and enhancing an attractive product lineup” including Activa, Dio, Shine, a light motorcycle model “used for a wide range of purposes” mainly in rural areas; and the SP, a high value-added light motorcycle model.
Surpassing Hero
By strengthening its sales network and services, the company has “steadily increased sales volume to the point where the largest market share in India is within reach”. This slot has been occupied by its erstwhile partner, Hero MotoCorp, for nearly 15 years now.
Honda will now pursue various initiatives to strengthen its business in India, including the automation of production plants and active cultivation and utilisation of local suppliers. In addition, it will further expand its two-wheeler business by implementing efficient product strategies globally, such as exporting high-value, highly-competitive products nurtured in India to the South American market where customer needs are similar to that of India.
Honda is expecting to see a further increase of two-wheeler demand also in ASEAN countries, Pakistan, Bangladesh and Brazil due to an increase in the working population that overlaps with the end-user population.
“Seizing this opportunity, Honda will further solidify its two-wheeler business by fully leveraging its strengths in products as well as sales, service, procurement and production operations on a global basis,” the company management has stated.
Recycling batteries
Meanwhile, the company is conducting various initiatives from the “perspective of resource circulation, including secondary use and recycling of batteries”.
In India, in collaboration with OMC Power, which operates a distributed power supply and grid business, Honda will deploy used Honda Mobile Power Pack e: as power feeders which will help people in areas with unstable power supply and off-grid areas in India, supplying power to local stores and schools.
In addition to reducing CO2 emissions by improving fuel efficiency, Honda is expanding the areas where its flexible fuel models are available, leveraging its experience in Brazil of introducing flex fuel models compatible with a blend of fuels such as gasoline and ethanol. In India, with the introduction of the CB300F, Honda has become the first motorcycle manufacturer to introduce a flex fuel model.
