Honda Motorcycle & Scooter India (HMSI), a relatively recent entrant in India’s electric two-wheeler sector, is taking a measured approach rather than rushing to flood the market with electric vehicles. The company is carefully studying the ownership experiences of early users to inform its long-term electric vehicle strategy. By analyzing battery degradation patterns from its initial models—the Activa Electric and EM1 e: (QC1)—Honda aims to refine its future electric vehicle roadmap.
Tsutsumu Otani, Managing Director, President and CEO of HMSI, noted, “In India, internal combustion engine (ICE) vehicles are typically used for 10 to 15 years. However, maintaining an electric vehicle for a similar duration is challenging due to battery performance decline after 4 to 5 years. We are closely observing how customers respond once battery capacity starts to diminish—whether they opt to swap batteries, replace vehicles, or switch preferences altogether.”
This year marks a critical phase as India’s earliest electric scooter users from 2020–2021 begin to experience battery wear. Honda views consumer behavior and perceptions about residual value during this phase as vital indicators that will influence future adoption, government policy, and product development.
Honda’s initial electric scooters follow a cautious entry into the market. The Activa Electric, which features a swappable battery, is currently limited to Bengaluru and has not yet achieved widespread sales. The QC1 model, by contrast, supports home charging. Honda considers its battery ownership model a key differentiator.
“With battery swapping, the battery remains with the manufacturer, not the consumer, enabling us to monitor battery health and ensure consistent performance. However, with home charging, guaranteeing battery life is more difficult,” Mr Otani explained. “Our dual approach offers consumers choice while enabling us to maintain long-term quality control through the swappable battery system.”
This hybrid model allows Honda to address diverse urban mobility needs and simultaneously collect valuable data on battery usage, charging habits, performance degradation, and replacement cycles. Despite a gradual start, Honda remains committed to the electric vehicle market. The company plans to produce 220,000 electric two-wheelers annually in the near future and has three additional electric models planned for India.
Globally, Minoru Kato, Executive Officer of Honda Motor Co, confirmed that the company intends to launch at least one new electric two-wheeler model worldwide each year, though specific details about India remain confidential.
India is central to Honda’s electric vehicle manufacturing strategy. A dedicated EV production facility in Karnataka is expected to be operational by 2028 and will support upcoming launches. Concurrently, Honda plans to increase its annual two-wheeler production capacity in India to seven million units by 2027, further scaling to 7.7 million units by fiscal year 2030, according to Autocar Professional.
India’s electric two-wheeler market reached 1.15 million units in fiscal year 2025, growing 21% year-on-year, with electric vehicle penetration at 6 to 7 percent. While startups initially led this segment, established manufacturers such as TVS, Bajaj, and Hero MotoCorp have significantly increased their presence. Honda, in contrast, is pursuing a deliberate participation strategy—closely observing customer challenges and infrastructure development rather than racing to be first.
This cautious approach allows Honda to understand consumer valuation of electric vehicles throughout their lifecycle, especially after battery degradation, helping to optimize product offerings, pricing, and after-sales support tailored to Indian conditions. In addition, Honda is ramping up exports, targeting shipments of 560,000 units in fiscal year 2026, up from 510,000 units in fiscal year 2025, focusing on markets in Latin America and Europe.
Though a late entrant, Honda is confident that real-world insights into battery performance will shape the future scale and structure of electric vehicle adoption in India. For Honda, success lies not in speed, but in precision and long-term sustainability. Honda Motorcycle & Scooter India (HMSI) is one of the leading two-wheeler manufacturers in India, known for its popular range of motorcycles and scooters. A wholly-owned subsidiary of Honda Motor Co Ltd, HMSI was established in 1999 and has since grown into a key player in the Indian automotive industry.
With a commitment to innovation, quality, and customer satisfaction, HMSI offers a wide variety of models catering to different market segments, including the popular Activa scooter series and Shine motorcycle. The company operates multiple manufacturing plants across India, ensuring high production capacity and strong distribution. HMSI also focuses on sustainability, safety, and expanding its presence in both urban and rural markets.
