Honda banks on India to power its global electric two wheeler market leadership bid

Japanese vehicle maker Honda has announced its ambition to lead the global electric two-wheeler market. The company began its EV journey with the launch of the Honda Activa e and Honda QC1, both unveiled in India last year and officially launched in February 2025.

Expanding its global EV footprint, Honda also introduced the Honda Icon e: in the Philippines and several other Southeast Asian countries. Meanwhile, the Honda CUV e: is set to go on sale in Europe and Japan, marking the company’s debut electric two-wheeler in those regions.

Toshihiro Mibe, Honda Director, President, and Representative Executive Officer, highlighted India as crucial to reaching this target. With India being a strategic place for a new Honda electric two wheelers factory - which will be built in Karnataka with production set to begin by 2028 - it will be a central hub in Honda's overall EV approach.

The operations in the factory will include component modularizing across Honda's upcoming electric models to achieve cost savings and efficiencies. Honda had also confirmed earlier that the products made in the new dedicated facility in India will be exported to several global markets

Honda plans to develop EVs on dedicated platforms and to manufacture them at its new high-efficiency plant in India. This will allow the company to create electric two-wheelers at lower prices, reinforce the business structure, and eventually take the top position in the global electric two-wheeler market.

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

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

Honda global motorcycle sales

For the fiscal year ending March 31, 2025, Honda had record sales of 2.057 crore motorcycles, representing around 40 per cent of the world market. Additionally, the two wheeler maker achieved its highest ever sales across 37 countries.

Honda anticipated that motorcycle demand is set to increase, especially in the Global South, such as India, where rising incomes and a growing population fuel market growth. Global two wheeler sales are set to increase from 5 crore units to 6 crore units per year by 2030, the company noted.

In response to this opportunity for growth, Honda plans to launch products that meet various global needs, enhance ICE model fuel economy, add flex-fuel vehicles, and accelerate the electrification of its two-wheeler range. Honda's goal is to have a global market share of 50 per cent by 2031, with an over 15 per cent return on sales (ROS).

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