Honda Aims for One-Third of Sales from Electric Vehicles by 2030

Honda Motorcycle and Scooter India (HMSI), India’s second-largest two-wheeler manufacturer, is set to launch its first electric vehicle (EV) by March 2024, despite delays. Initially planned for earlier in the year, the launch of their electric scooter will mark Honda’s entry into a rapidly growing EV market.

Yogesh Mathur, HMSI’s Director of Sales and Marketing, emphasized that while the company has been slower to enter the EV space compared to rivals like TVS Motor, Bajaj Auto, and Hero MotoCorp, it views this as a strategic choice. He highlighted that the electric scooter market share has risen from 5% to 8% in the past year, with expectations that EVs will represent a third of sales by 2030.

Mathur dismissed concerns about missed opportunities, explaining that Honda’s delay allowed them to address other market segments effectively, such as their successful Shine 100 motorcycle. He also noted that the impact of EV subsidies on their strategy is minimal, as the company plans to adapt to market conditions whether or not subsidies remain.

In addition to EVs, Mathur acknowledged the diverse powertrain landscape in India, citing the recent introduction of Bajaj Auto’s CNG motorcycle as an example of the market’s adaptability. He anticipates that once the monsoon stabilizes, particularly with the disruptions caused by flash floods and election delays, sales will improve during the festival season. The 125cc segment remains strong for HMSI, driven by popular models like the Dio 125 and Shine 100.

Overall, Honda’s focus remains on aligning with market trends and leveraging opportunities in both the electric and traditional two-wheeler segments.