Honda Motorcycle & Scooter India (HMSI) is gearing up to enter the electric vehicle (EV) segment this fiscal, with plans to make a significant impact in the growing EV market. According to Yogesh Mathur, HMSI’s Director of Sales and Marketing, the company envisions one-third of its overall sales coming from electric vehicles by 2030. This ambitious target comes as the two-wheeler market in India increasingly shifts towards electric mobility.

HMSI's move into the electric segment is a response to the growing demand for electric two-wheelers, which continues to rise year on year. "What we understand is that by 2030, there will be a major shift towards EVs," Mathur stated, affirming that Honda's lineup will have a significant EV contribution by then. This decision aligns with the global automotive industry's shift towards greener technologies.

Capacity Utilisation and Expansion Plans

At present, Honda’s production plants are operating at full capacity. The company has an installed capacity of 62 lakh units annually, and Mathur mentioned that they are considering tweaks to production capacity on a per-day basis to accommodate future demand for electric vehicles. When asked if HMSI is planning a new manufacturing facility, Mathur confirmed that the company is exploring those options. "We are studying those options. So all those options are also in the pipeline," he added.

This strategic move aims to reduce reliance on traditional two-wheelers, which predominantly run on internal combustion engines, and move towards greener, more sustainable electric options. This push for self-reliance will be critical, especially as HMSI eyes massive growth in the EV segment over the next decade.

Growth Expectations and Festive Season Projections

With the festive season approaching, Mathur expressed optimism, stating that this year could be one of the best years for the two-wheeler industry in terms of sales. He also indicated that the industry might take three to four years to return to the sales peak it witnessed in 2018-19.

Honda Motorcycle & Scooter India’s entry into the EV market this fiscal is expected to drive growth in the domestic market while contributing to its global footprint. The company has already set an aggressive sales target, aiming for multiples of growth in its exports by 2030.

Honda's Long-Term Vision for EVs

The long-term vision of HMSI is to be a key player in the electric vehicle market by offering innovative, high-performance EVs that cater to customer demands for cleaner and more sustainable transportation. By 2030, Honda hopes that electric vehicles will form one-third of its sales, showcasing the company’s commitment to environmental sustainability.

Honda's entry into the electric two-wheeler market reflects the broader trends within the global automotive industry, where companies are increasingly focusing on electric mobility to reduce carbon emissions and dependence on fossil fuels. HMSI’s strategic move is also in line with the Indian government's push for EV adoption to combat pollution and reduce oil imports.

Preparing for the Shift to Electric Mobility

As demand for electric vehicles continues to surge in India, HMSI is positioning itself to be a major player in this segment. By 2023-24, the company plans to roll out its first electric two-wheeler model, with more products to follow. These models are expected to feature advanced battery technologies and cutting-edge design to meet the evolving needs of Indian consumers.

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