Honda to Set Up Exclusive Electric Motorcycle Plant in India by 2028
Japanese auto giant Honda Motor has revealed its plans to set up a dedicated electric motorcycle manufacturing plant in India by 2028, marking a significant step in its strategy to tap into the fast-growing electric vehicle (EV) market. The new facility will focus on the production of a wide range of electric two-wheelers, utilising modular components that can be shared across various models.
While Honda has not disclosed specific details about the plant’s location or the investment involved, this move underscores the company’s ambition to play a central role in India’s transition to electric mobility. Minoru Kato, Executive Officer and Chief Officer of Honda’s Motorcycle Business Unit, confirmed the plans in a global address, stating, “Honda is striving to offer electric motorcycles at a price point where the total cost of ownership (TCO) over three years will match that of internal combustion engine (ICE) models.” This reflects Honda’s commitment to making EV motorcycles affordable, aligning them with conventional petrol-powered two-wheelers in terms of cost-effectiveness for consumers.
The upcoming plant will produce at least eight electric motorcycle and scooter models, catering to a growing segment of environmentally conscious consumers. Honda is also working with battery manufacturers to secure a stable supply of batteries and ensure that the specifications meet the requirements of electric motorcycles. This strategic move will help Honda position itself as a key player in India’s expanding EV market, which is supported by government incentives and subsidies for electric vehicles. In India, the electric two-wheeler market is experiencing rapid growth, with around one million electric two-wheelers sold annually. This accounts for approximately 5% of the overall two-wheeler market, a figure that is expected to rise as more consumers embrace electric mobility. As part of its strategy, Honda plans to capitalise on this growth by offering affordable, efficient, and high-quality electric motorcycles tailored for the Indian market.
Honda’s subsidiary, Honda Motorcycle & Scooter India (HMSI), will play a pivotal role in the rollout of this EV initiative. With an extensive sales network of over 6,000 outlets across the country, HMSI will leverage its infrastructure to ensure a smooth and accessible experience for customers, including providing charging facilities, particularly for fixed-battery models. Honda’s global strategy further reinforces its commitment to electric mobility. The company aims to introduce 30 electric models worldwide by 2030, with a target of selling 4 million electric motorcycles annually. This ambitious goal is part of Honda’s broader vision to establish a strong foothold in the global EV market, alongside its traditional internal combustion engine offerings. In 2024, Honda marked what it referred to as the “first year of electric globalization,” highlighting its commitment to electrification with models specifically designed for markets like India, including the Activa e: and the QC1.
India plays a crucial role in Honda’s EV strategy. The company is targeting key Asian markets, including India, Indonesia, Thailand, and Vietnam, to drive its growth in the electric motorcycle sector. In 2024, Honda achieved record motorcycle sales in 37 countries, with Asia accounting for 85% of the company’s total motorcycle sales. Honda expects to sell 20.2 million motorcycles globally in 2024, and it aims to capture a significant share of the EV market as it grows. The establishment of Honda’s electric motorcycle plant in India represents a major step in the company’s global transition to EVs. It also underscores India’s increasing importance as a hub for electric mobility and the role of local manufacturers in shaping the future of transportation. As the market for electric two-wheelers expands, Honda’s new facility and its ongoing efforts to expand EV infrastructure are poised to accelerate the shift towards greener, more sustainable mobility options for consumers.