Honda Plans New Electric Two-Wheeler Plant in India by 2028

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Honda Motor Co. Ltd. has revealed its intention to establish a specialized electric two-wheeler manufacturing facility in India, set to commence operations by 2028. This initiative is part of the company's strategic plans for its motorcycle division. The announcement was made from Japan shortly after Honda Motorcycle and Scooter India (HMSI), its Indian subsidiary, launched its first electric two-wheelers for the market, namely the Active e and QC1.

New Honda EV Plant To Be Functional By 2028

Honda announced in its statement that the new manufacturing facility for electric two-wheelers is expected to be operational by 2028, with products from this plant intended for export to various international markets. The company indicated that several electric two-wheeler models utilizing the same foundational design will be produced at this location. Currently, Honda is manufacturing the Activa e and QC1 at its Narsapura facility in Karnataka. It remains uncertain whether the company intends to expand its operations at this site or seek a completely new location.

The new EV plant will produce electric two-wheelers sharing commonised components across multiple models

The newly established electric vehicle plant will manufacture electric two-wheelers that utilize standardized components across various models. Honda has announced its efforts to lower the Total Cost of Ownership (TCO), which continues to pose challenges for electric two-wheelers. The company indicated that local production in India will enable these electric models to achieve a TCO comparable to that of internal combustion engine (ICE) models over a three-year ownership period.

During a recent press conference, Daiki Mihara, Operating Executive and Head of the Motorcycle and Power Products Electrification Business Unit stated, “We will initiate our offerings with a commuter motorcycle equipped with a 4 kWh battery, which is comparable to 100 cc motorcycles. There is also potential for exporting these models. We are capable of producing electric motorcycles akin to midsize models in India.” As Honda aims to solidify its presence in India's electric two-wheeler market in the upcoming years, the company also plans to position India as a key export hub for electric vehicles targeting other developing and price-sensitive markets.

Strong demand for Honda's two-wheelers

Honda has expressed its vision for increased global demand for motorcycles, particularly in a region it designates as the "Global South," which includes India, Indonesia, the Philippines, Brazil, and various Central and South American nations. India stands as the company's largest market. Honda projects global sales of two-wheelers to reach 20.2 million units in the fiscal year 2025, with approximately 85 per cent (17.17 million units) of these sales anticipated to originate from India, Indonesia, Thailand, and Vietnam.

The company aims to expand its electric vehicle (EV) lineup to 30 models by 2030, targeting annual sales of four million units. Honda has set an ambitious goal to secure 50 per cent of the global two-wheeler market by the end of the decade, with its electrification strategy being pivotal to achieving this objective. To date, Honda has launched 13 of the planned 30 models.

In terms of its electric vehicle initiatives in India, the Honda Activa e marks the brand's first electric model and introduces a battery-swapping service for retail customers. Operations will begin in Bengaluru, followed by expansions into Delhi and Mumbai. Honda also announced plans to utilize its extensive dealer network of 6,000 outlets to establish charging stations. While the Activa e features swappable batteries, the QC1 model is equipped with a fixed battery system. The company intends to roll out additional models in India that will also utilize fixed batteries in the future.

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