Honda is expanding capacity, product portfolio as it targets 30% two-wheeler market share

Yogesh Mathur, Director, Sales and Marketing, Honda Motorcycle & Scooter India.

Honda Motorcycle & Scooter India (HMSI) is enhancing its production capacity and adding more models to its product portfolio as the company aims to achieve a 30% share in the country's two-wheeler space by FY30, according to a senior official of the Activa-maker.

The domestic two-wheeler market recorded overall volumes of 1,96,07,332 units in FY25. Hero was the leader with a share of 28.61%, closely followed by Honda at 27.17%. Then came TVS at 17.95% and Bajaj at 11.77%.

During an interaction with Moneycontrol, HMSI Sales and Marketing Director Yogesh Mathur said: "30% market share is definitely possible by FY30. We are expanding capacity and launching new models. We already have a strong portfolio across all the segments we are present in. So we are very much hopeful that once the economy starts showing positive signs, we will definitely achieve that target."

Honda currently has four plants in India -- Manesar (Haryana), Tapukara (Rajasthan), Narsapura (Karnataka) and Vithalapur (Gujarat). The production at the Manesar unit started in 2001, followed by the Tapukara unit in 2011, the Narsapura unit in 2013 and the Vithalapur unit in 2016.

The company is working on building a new production line at its Vithalapur plant. Expected to begin operations in 2027, this will be the fourth line at the facility, adding a capacity of 6,50,000 units and increasing the annual production capacity at the plant to 26,10,000 units. Moreover, this will make the Vithalapur plant Honda's largest motorcycle assembly plant in the world.

The capacity addition will also result in Honda's overall annual production capacity reaching nearly 70,00,000 units in India by 2027.

In terms of expanding its product portfolio, Honda has been quite busy this year. It has introduced multiple completely built unit (CBU) models and updated the existing models with new features and colour combinations. The company recently launched two completely new models -- Shine 100 DX and CB125 Hornet.

With the Shine 100 DX, Honda is targeting the entry-level 100cc motorcycle segment, which is dominated by Hero. The CB125 Hornet is aimed at the 125cc motorcycle segment, which is already dominated by Honda with models like the Shine 125 and the SP125.

"The Indian two-wheeler market is divided into many segments and sub-segments. The 100cc segment overall accounts for almost 29% of the total two-wheeler sales, and out of that, 70% is majority low customer. So this majority low segment remained untapped by us. The Shine 100 DX is going to enter that particular space, and there is huge potential," Mathur said.

"In the 125cc, all the customers like our products and services. Both flagship models, the Shine 125 and the SP125, are doing good numbers for us. However, we could see that there was a latent demand available in that particular 125cc space, wherein the youngsters were looking at an exciting product that can cater not just to commuting needs, but should also be stylish. Keeping that set of customers in mind, we developed the CB125 Hornet," he added.

Honda forayed into the electric vehicle (EV) space with two models -- Activa e: and QC1. While the Activa e: electric scooter comes with a pair of swappable batteries, the QC1 electric scooter gets a single fixed battery.

Mathur said that since the Activa e: is based on a swappable battery mechanism, we need to have the infrastructure in place. "Back stations are currently being deployed, especially in the Bangalore market. And very soon, we will be starting our business in Delhi, and then going forward, in Mumbai. Within the next three months, we will have all three cities covered for the Activa e:," he added.

The company has started offering the QC1 in 21 cities. "By the end of this fiscal, we are going to touch 50% of the total EV market being represented for QC1," Mathur noted.