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Honda’s Full-scale Entry into Asia in 2024, the First Year of Global Electric Motorcycle Expansion
POINTWhat you can learn from this article
- Honda announces two electric motorcycle models in India, a fast-growing electric motorcycle market
- Honda works to create a recycling-oriented value chain using the Honda Mobile Power Pack e: as an environmental frontrunner
- Honda also launches electric motorcycles in ASEAN countries such as Indonesia, and in Europe
2024 is Year 1 for electric bikes! Full-scale entry into the electric motorcycle market in Asia
In FY2023, Honda’s global motorcycle sales exceeded 18.8 million units. In Asia, 16 million motorcycles were sold. In the motorcycle business, Honda aims to achieve carbon neutrality in all its products in the 2040s in accordance with its Global Carbon Neutrality Vision, and has positioned 2024 as the first year of global expansion of electric motorcycles, ramping up entry into the electric motorcycle markets mainly in India and ASEAN countries. Honda aims to introduce more than 30 models by 2030, based on demand specific to each country, in addition to work bikes such as the BENLY e:, which has been the mainstay of its sales to date, models less than or equal to 50cc which has a limited market globally, and 51 cc - 125 cc models , which is the largest selling segment in Asia.
Indian market rapidly expands with electric motorcycles
India, one of the largest motorcycle markets, is also one of the fastest growing markets for electric motorcycles. Honda has more than 6,000 Honda motorcycle sales and service outlets and over 63 million customers throughout the country. In response to the rapid demand that is emerging in this huge market, Honda is entering the electric bike market.
In 2024, Honda opened a new R&D center in Bengaluru, where electric bikes are becoming more popular than ever. Honda aims to develop products that will accelerate the shift to electrification, as well as to create new services and businesses.
The Activa series of internal combustion engine (ICE) scooters currently enjoys a dominating popularity in India, and is widely used for daily transportation, such as commuting to work and school. Honda is working to offer electric motorcycles that combine the strengths it has cultivated in conventional ICE motorcycles with the unique appeal of electric power.
Developing new models based on long-standing sales and experience, taking into account how electric bikes are used in local markets
Strategy 1: Two Models to Meet the Market-Specific Challenges
On November 27, 2024, Honda announced the launch of two models in the Indian electric motorcycle market: the Activa e: and the QC1.
The Activa e:, named after India’s most-loved Activa, is powered by the Honda Mobile Power Pack e: (MPP), a swappable, portable battery. Honda has also applied its expertise in developing basic performance such as riding, turning, and stopping, accumulated through the development of ICE models, to develop comfortable electric mobility that only Honda can offer.
The QC1 is equipped with a 1.5kWh fixed battery that delivers high energy density and a long-cycle life*1, making it a convenient model for daily use such as commuting to work or school. With a charging time of approximately 6.5 hours, it can be fully-charged while the user is sleeping, and will be marketed to customers who place importance on economic efficiency.
*1 The number of charge/discharge cycles for batteries and power storage
With these two models, Honda will address a wide range of needs according to customer use.
Strategy 2: Focus on Expanding Battery Swap Stations and After-Sales Service
The key issues of electric mobility, range, charging time and battery degradation, can be effectively addressed with swappable, portable batteries.
In India, Honda has also established a battery sharing scheme provider company, which maintains battery swap stations throughout the city and provides a large number of MPPs for replacement. This has enabled bikes to be easily charged at any time throughout the city, even after leaving home, eliminating the anxiety of running out of battery power.
In India, after-sales service is a priority for electric motorcycles as well as ICE models, and service packages have been introduced to ensure that after-sales service is always available at dealerships.
Strategy 3: Establishing a Recycling Value Chain with ”Make in India”
Deploying used MPPs to regions off the power grid. The MPPs are used for ceiling fans and electric lights in schools, as well as homes and restaurants.
In addition to its initiatives in electric motorcycles and battery sharing, Honda is also focusing on the reuse of MPPs.
Specifically, Honda is collaborating with OMC Power, a company that operates a distributed power supply and grid business*2 in India, to utilize used MPPs, which power the Activa e:, as power feeders in India's power-unstable and off-grid areas, and well as to supply power to private stores and schools.
*2 Generic term for small-scale power generation and transmission/distribution facilities that do not connect to existing large-scale power transmission systems, but instead independently generate, transmit, and distribute electricity.
Honda, as an environmental frontrunner, will work to build a recycling-oriented value chain in the “Make in India” initiative*3, including the eventual recycling of precious metals and other materials.
*3 “Make in India” is an initiative announced by Prime Minister Modi when he took office in 2014, for the promotion of the manufacturing industry. The goal is to increase the share of the manufacturing sector in GDP from 15% to 25% by promoting the attraction of direct investment through improving the investment environment.
Similar initiatives in Indonesia and Europe
Initiatives in ASEAN and European Regions
Similar initiatives to India are being rolled out in other markets as well, with the launch of two models, CUV e: and ICON e:, with swappable and fixed batteries respectively, in Indonesia and Vietnam. At EICMA, the world’s largest motorcycle show held in Milan, Italy, Honda announced the launch of the CUV e: in the European market. In addition, Honda also introduced two concept models*4: the EV Fun Concept, Honda's first electric sports model, and the EV Urban Concept, an urban electric mobility model.
*4 Neither model is equipped with MPP
Read more: EICMA 2024 Exhibit Overview | Honda Corporate site
Honda Unveils Electric Motorcycle Concept Models “EV Fun Concept” and “EV Urban Concept” at EICMA 2024 | Honda Global Corporate Website
Summary
India is one of the largest motorcycle markets in the world and has a lot of potential. Honda will continue to develop electric motorcycles with swappable battery technology and efficient ICE models using bio-ethanol to meet the demand for motorcycles, and for carbon neutrality, in India, Asia, and the world.
* Activa e: and QC1 are India-market models (not planned for launch in Japan)
* CUV e: and ICON e: are global models (CUV e: is planned for launch in Japan, ICON e: is not yet planned)