Gujarat: As India’s electrical two-wheeler market heats up, Honda Motorbike & Scooter India (HMSI) is choosing a wait-and-watch technique earlier than scaling up, because it sees 2025 as a pivotal yr to gauge whether or not the market will develop or stagnate. This cautious strategy comes even because it has introduced plans to arrange a devoted electrical car (EV) manufacturing plant inside the premises of its present third facility in Karnataka by 2028.
A late entrant to the EV market, the Japanese automaker launched its first two fashions– the Activa e with swappable battery and QC1 with mounted battery– this yr. Though the entry has been sluggish, the corporate’s management staff stays dedicated to a gentle tempo with the last word objective of successful the race.
Talking to reporters in Japanese with English interpretation, Tsutsumu Otani, Managing Director, President & CEO of HMSI, acknowledged that startups pioneered the EV market in India, whereas legacy corporations like TVS Motor and Bajaj Auto at the moment are driving quantity development.
Nonetheless, he famous that regardless of rising gross sales for these OEMs, the general market has not grown to a major stage. It’s because the EV prospects are primarily drawn by incentives and the associated fee benefit over gasoline autos. In the event that they cease perceiving these advantages, the market could start to shift, Otani added.
For the yr ended March 2025, EV penetration in India’s home two-wheeler market stood at 6 per cent, with gross sales rising to 11.49 lakh items from 9.48 lakh items the earlier yr. Bengaluru-based Ola Electrical led the section, whereas TVS and Bajaj fiercely competed for the second and third positions, surpassing Ather Power and Hero MotoCorp.
Battery substitute value
Otani additionally drew parallels between the lifecycle of ICE and battery-powered autos. Whereas ICE bikes sometimes final 10 to fifteen years, EV batteries begin to degrade after about 5 years. At this level, prospects should both exchange the battery or your complete car, very similar to upgrading a smartphone.
He stated HMSI is starting its EV journey at a vital time. Because the EV market in India enters its fourth yr, early adopters will begin experiencing battery degradation, marking a key second when buyer perceptions of long-term EV possession will start to type.
If customers are keen to just accept the price of battery substitute, the EV market might proceed to develop, Otani defined. Although, he reiterated, it’s nonetheless troublesome to foretell how the general market will evolve.
It’s price noting that the automaker’s cautious strategy additionally led to a phased growth technique for its EVs. At the moment, the Activa e is accessible solely in Bengaluru and is but to realize vital traction. The subsequent deliberate launch, guided by the supply of battery swapping stations, is focused for Delhi and Mumbai. Each the EV fashions are being offered by present Pink Wing dealerships.
When requested why HMSI shouldn’t be providing dwelling charging for the Activa e, Otani responded that within the battery swapping mannequin, the battery stays the property of the OEM slightly than the client. This setup protects the client from the impression of battery degradation, because the duty for battery efficiency lies fully with the OEM. In distinction, with dwelling charging the client owns the battery, making it troublesome for the OEM to ensure long-term security and efficiency.
Final yr, ETAuto reported about HMSI’s EV recreation plan.
Honda, which sells scooters with swappable battery expertise in Japan and Indonesia, has partnered with OMC Energy to help battery swapping infrastructure in Indian cities.
Globally, the corporate plans to develop each swappable and glued battery fashions, launching no less than one new mannequin annually beginning in 2026. Nonetheless, the corporate has not disclosed what number of of those might be launched within the Indian market.
Striving for home market management
In India, the corporate’s EV journey contrasts with its long-standing objective to steer the home two-wheeler market. Having held the No. 2 place for years, the automaker goals to surpass Hero MotoCorp this fiscal yr.
To help this ambition, the two-wheeler maker has introduced an funding of ₹920 crore to construct a fourth manufacturing line at its Vithalapur plant in Ahmedabad district, Gujarat. Scheduled to be operational by 2027, the brand new line will produce 125cc bikes and add an annual capability of 6.5 lakh items, rising the plant’s whole capability to 26.1 lakh items.
“We’re aiming for No.1 market share in India by making a manufacturing setting that meets the wants of the world’s largest market of 20 million items,” the corporate stated in its official assertion.
The elevated capability may even help the corporate’s objective of creating India its export hub. In FY25, HMSI exported 5.05 lakh items from India. “We’re planning to export bikes with mid-range engine displacements to European markets. Nonetheless, we are going to share extra detailed data on this later,” it stated.
HMSI, which started manufacturing in India in 2001, at the moment operates 4 manufacturing crops throughout the nation, together with services in Manesar (Haryana), Tapukara (Rajasthan), Narasipura (Karnataka), and Vithalapur (Gujarat).
