Japan's Honda Motor Co Ltd on Tuesday said it is within reach of achieving the number one position in the Indian two-wheeler market and will introduce a variety of products, including scooters and EVs, to solidify its position.
The company, which parted ways in 2011 with erstwhile partner Hero MotoCorp — the current market leader, said it will also strive to capture the largest market share in the electric two-wheeler segment in India, where it will begin operating a dedicated electric two-wheeler production plant in 2028.
"We have launched highly competitive products of all kinds… With the advantage of the strength of 6,000 dealers and service networks covering all the geographies of India, we have increased the unit sales. Now, the number one position is well within our sight," Honda Motor Co Executive Officer, Chief Officer, Head of Motorcycle and Power Products Operations, Motorcycle Business Unit, Minoru Kato said in a news conference in Tokyo.
"Going forward, we will accommodate the diverse needs and income levels of customers (in India). We will fortify with all products, including EVs, scooters and motorcycles, in order to solidify the number one position." Honda is present in the Indian two-wheeler market through its wholly-owned arm Honda Motorcycle and Scooter India (HMSI). In 2011, it exited from the erstwhile joint venture Hero Honda after 26 successful years.
As per data from the Society of Indian Automobile Manufacturers (SIAM), in the April-December period this fiscal, HMSI has narrowed the gap to Hero MotoCorp with total wholesales of 41,38,346 units to the Indian rival's 43,30,928 units.
In the same period last fiscal, HMSI's wholesales were 33,75,566 units compared to Hero MotoCorp's 40,95,084.
Honda said in India, the world's largest two-wheeler market, it has been "building and enhancing an attractive product lineup that accommodates the diverse needs of customers".
Its lineup currently includes ACTIVA, the best-selling commuter scooter model; Dio, a scooter targeting young people; the light motorcycle model Shine and SP, a high-value-added light motorcycle model.
The company further said to further expand sales, it will pursue various initiatives to strengthen its business in India, including the automation of production plants and active cultivation and utilisation of local suppliers.
In addition, Honda said it will further expand its two-wheeler business by implementing efficient product strategies globally, such as exporting high-value, highly-competitive products nurtured in India to the South American market, where customer needs are similar to those of India.
On its EV plans, Honda said in November, it announced two electric two-wheeler models designed exclusively for India — 'ACTIVA e' with a swappable battery and QC1 powered by a fixed battery.
"Honda will leverage its broad sales network to enhance the battery charging network, which will eliminate customer anxiety about running out of battery power. Through these initiatives, Honda will also strive to capture the largest market share in the electric motorcycle (two-wheeler) market in India," it added.
Honda said it is working to sell its electric two-wheeler models in the price range where the total cost of ownership (TCO) for the three years of ownership will be equivalent to that of ICE models.
"To achieve this target, Honda will begin operating a dedicated electric motorcycle production plant in India in 2028. A wide variety of electric models will be produced by combining modules that are commonised for multiple models," the company said.
Additionally, for batteries, the core component of electric models, Honda has been working with battery manufacturers to establish specifications suited to the characteristics of motorcycles and ensure stable procurement, it added.
In collaboration with OMC Power, which operates a distributed power supply and grid business, Honda has begun an initiative to utilise 'Honda Mobile Power Packe:' as power feeders, which will help people in areas with unstable power supply and off-grid areas in India, supplying power to local stores and schools, it added.
The company further said that with the introduction of the CB300F, it became the first motorcycle manufacturer to introduce a flex-fuel model in India.
"Honda will offer products suitable for the energy situations of each region," it noted.
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