Unveiling New Possibilities in the Motorcycle Market

The motorcycle business is foundational to Honda, deeply rooted in its origins. Through a manufacturing approach tailored to each country and region, Honda has grown into a premier manufacturer with a global network of over 30,000 dealers and 35 manufacturing bases for finished products. With an annual worldwide sales volume of approximately 20 million units, we capitalize on this extensive network, platform design and a global supply complementation system. This has enabled us to craft products that showcase Honda’s unique appeal and exceptional cost competitiveness, thereby maintaining a notably profitable business framework.
By addressing the universal “mobility needs” of customers and uncovering new opportunities within the motorcycle market, we aim to lead the industry and become the foremost global motorcycle company.

Revenue Highlights of the Motorcycle Business

Towards a Business for the New Era

The motorcycle market is anticipated to sustain its expansion, particularly in emerging countries characterized by burgeoning young populations. Additionally, global environmental regulations are undergoing tightening, and environmental awareness is growing as governments establish electrification targets not only in developed nations but also in emerging economies like India and Southeast Asian countries.
The electrification of mobility is expected to be a solution, while on the other hand, the demand for electric vehicles in emerging countries is significantly influenced by government incentives. Moreover, challenges persist on the infrastructure side, including stable power supply and the development of charging networks. Amidst the uncertainties related to the shift to electric vehicles, we will optimize resource allocation by identifying markets where demand for ICE vehicles persists and where electrification is progressing. We will harness Honda’s strengths to distinguish ourselves from emerging electric vehicle manufacturers.

Leading Environmental and Safety Innovations: “More Convenience, More Freedom”

Motorcycles serve as vital transportation means in emerging countries, particularly across the Asian region, contributing significantly to people’s lives and serving as essential components of social infrastructure. To this end, Honda recognizes the importance of providing products at price points accessible to customers. We will sustain a superior level of cost competitiveness by consistently driving cost reductions through platform design enhancements that enhance production efficiency and the expansion of a global supply complement. Moreover, we are poised to intensify our engagement with customers through digital technology. Through this approach, we will vigorously promote and extend the convenience and enjoyment that motorcycles bring to people’s lives.
Furthermore, in pursuit of a secure and safe mobility society, we will persist in our worldwide deployment of driving safety education, a commitment we have upheld over an extended period. Additionally, by broadening the array of models equipped with advanced braking, LEDs and other safety technologies, we will deliver enhanced “convenience and freedom” to a broader spectrum of customers.
To address environmental concerns, we will accelerate our endeavors to achieve carbon neutrality, transcending mere electrification. Our efforts will encompass enhancements in fuel efficiency within the internal combustion engine (ICE) realm and technologies compatible with bioethanol fuel, all while adapting to the distinctive features of different regions.

Direction of Electrification Strategy

Honda motorcycles address the global “mobility needs” of a diverse clientele and enjoy widespread use. Leveraging our competitive manufacturing technologies and the expertise amassed through the development of internal combustion engine (ICE) vehicle platforms, we will embark on crafting an array of electric motorcycle platforms catering to the demands of customers across different nations. Through streamlined manufacturing processes, we are committed to leading the worldwide electric motorcycle electrification movement, ensuring that electric vehicles provide the same exhilarating “joy of mobility” as their ICE counterparts, all at a more accessible cost.
To cater to the myriad needs across the globe, we are not only focusing on electric products intended for business use within somewhat restricted contexts but are also actively designing solutions for personal use across a multitude of scenarios. For personal-use models, the ability to select the most suitable battery type in accordance with usage environments and convenience holds paramount importance. To empower customers to opt for their preferred battery type, we are poised to offer two options, including swappable and plug-in battery, catering to a diverse range of demands.

Medium- to Long-Term Targets

By 2026, we intend to globally introduce a total of 10 or more electric motorcycle models, with the goal of achieving annual sales of 1 million units. By 2030, we aim to further expand the lineup and target sales of 3.5 million units.

Specific Initiatives

Advancing Electrified Product Development

We are poised to enter the market with a focus on business-oriented models that are witnessing escalating demand aligned with the principles of SDGs (Sustainable Development Goals) and ESG (Environmental, Social, and Governance) management. Among these models, the BENLY e:, GYRO e: and GYRO CANOPY e: stand as prime examples of business-oriented offerings, each equipped with the Honda Mobile Power Pack e: portable and swappable battery technology. The BENLY e: is now being manufactured not only in Japan but also in Thailand. Furthermore, these Thai-produced BENLY e: models are made available both for Thailand and for export to Vietnam.

Benly e:

GYRO e:

GYRO CANOPY e:

In addition to these business-oriented models, we introduced the EM1 e: as a personal-use model in Japan in 2023. Our plans include expanding its presence into Europe and Indonesia, along with unveiling a new model in India. Our focus remains on accelerating the development and launch of electric motorcycles tailored for individuals, particularly in the burgeoning Asian region where demand for electric motorcycles is on the rise.

EM1 e:

We are concurrently engaged in the development of plug-in charging system products featuring fixed batteries, foreseeing a spectrum of customer applications and evolving market conditions. Our commitment endures in technological development that cater to the diverse needs and lifestyles of our global customer base, delivering a variety of battery and charging method options.

Procurement and Production Strategy

We are strategizing the ideal distribution of production resources for electric motorcycle components —battery, PCU and motor—to match demand. Among the crucial markets in Asia, we will focus on expanding in India and Indonesia.
Furthermore, we are contemplating the next-generation batteries designed for electric motorcycles, emphasizing high output, elevated energy density and extended lifespan, all while ensuring the paramount safety of this vital battery component.
To aptly serve the needs of diverse regional markets, we are propelling rapid development to furnish battery systems tailored to distinct usages, encompassing NCM-based (nickel-cobalt-manganese) and LFP-based (lithium-ion iron phosphate) solutions.

Promoting a Battery-Sharing Service

The popularity of electric motorcycles hinges on the resolution of concerns regarding battery cost, charging infrastructure and cruising range. As a targeted solution to these challenges, we have innovated the Honda Mobile Power Pack e, a portable and swappable battery. We introduced a battery-sharing service initiative in 2022, using the swappable battery technology. To facilitate this, we have established local subsidiaries in both India and Indonesia. In Japan, in April of 2022, ENEOS Holdings, Inc. and the four major Japanese motorcycle manufacturers (Honda, Kawasaki Motors, Ltd., SUZUKI MOTOR CORPORATION and Yamaha Motor Co., Ltd.) jointly incorporated Gachaco, Inc. We plan to further expand and develop this business in the future.

Enhancing Adaptability to Environmental Shifts

Amidst profound transformations in the market landscape, encompassing escalating raw material and energy costs alongside growing societal expectations for environmental and safety considerations, Honda is heightening its competitive edge by striving for an adaptable framework poised to navigate environmental fluctuations. Tangible endeavors include component sharing, expedited development of mass production, cost innovation through the utilization of cost-effective catalysts and the establishment of a resilient supply chain embracing risk diversification. These actions collectively amplify efficiency across the entirety of the value chain, ensuring enduring profitability while fortifying the bedrock of our leadership in the electrification domain as we fervently pursue an augmented presence.