Honda has no plan to separate the motorcycle business, snubs as rumour
- Honda aims to go fully electric in the motorcycle segment by 2040.
Japan's Honda Motor Co Ltd has claimed that it has no plan to hive off its electric motorcycle business and list it on a stock exchange, claims a report by Reuters. The statement from the Japanese automaker comes following a report by Wall Street Journal claiming the automaker is considering separating the motorcycle business and listing it.
The WSJ report cited Honda's managing officer Yoshishige Nomura claiming that the automaker would list its unit. The report on Tuesday also claimed that discussion around the pros and cons of the plan was still at an early stage. Honda has snubbed it as a rumour and clarified that it has no such plan to separate the motorcycle business.
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Earlier on Tuesday, Honda also said that it plans to launch more than ten electric motorcycles globally by 2025 in an attempt to achieve carbon neutrality for motorcycles by the 2040s. Honda dominates the global motorcycle business but faces challenges in promoting higher-priced electric variants in developing economies, claimed the report. It stated that Honda finds the idea challenging to offer higher priced and heavier electric motorcycles in the developing markets, where motorcycles are in demand as compared to developed economies. With the higher-priced motorcycles, the entry-level barrier for consumers will be higher.
In India, Honda is currently the second largest two-wheeler manufacturer. But, despite having a stronghold in the market with its range of motorcycles and ICE-powered scooters, the company is yet to launch any electric vehicle. Some of Honda's rivals in markets such as India, including TVS Motor Company and Bajaj Auto have already introduced their electric products like TVS iQube and Bajaj Chetak. They have compelled the Japanese two-wheeler and car manufacturing company in introducing battery-powered motorcycles and scooters.