Honda bets big on flex-fuel models over electric two-wheelers in India

Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is betting big on ethanol-blended petrol-propelled flex-fuel engine-powered two-wheelers over battery-powered EVs in India. The company unveiled 10 new motorcycles and scooters last week, as part of the brand's upcoming products, which are slated to launch in India soon, and revealed that it is backing the flex-fuel models over EVs to decarbonise its product lineup in the country. Interestingly, this comes at a time when several two-wheeler manufacturers in India have started focusing on launching E85-compliant flex-fuel-powered motorcycles and scooters in the country alongside electric two-wheelers.

Bloomberg has quoted Tsutsumu Otani, president and CEO of HMSI, saying that green mobility has to stay accessible, reliable, and suitable for real customer needs. He also said that sustainability must be practical. Otani said that the OEM is betting on flex-fuel options, including petrol blended with 85% ethanol, known as E85, and 100% ethanol, alongside advanced internal combustion engines, arguing that no single technology fits every rider in a market as varied as India’s.

Electric two-wheelers accounted for 8% of more than two crore motorcycles and scooters sold in the country in FY26. Honda, Suzuki, and Yamaha sold just 4,746 of these units, with under 1% share in total sales.

Interestingly, Honda’s India strategy aligns with its global product strategy as its Japanese parent is halting sales of its EVs in the US. The pullback comes after the company invested too much and too late into a short-lived EV boom. Otani said that even in India, EV adoption remains concentrated in southern parts of the country, where EV charging infrastructure is more developed, while rural markets continue to favour traditional ICE-powered models. “Customers don’t really care about ICE or EV. Customers simply want what’s good value," he said, while adding that Honda considers the EV base too immature and infrastructure-dependent to chase it aggressively. He cited blackouts and inconsistent charging access for prioritising a multi-pathway approach spanning ICE, electric and alternative fuels rather than a straight EV pivot.

This strategy contrasts with homegrown legacy rivals TVS and Bajaj, alongside startups like Ather Energy and Ola Electric that dominate the battery-powered scooter segment in India.

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