New Delhi, May 20, 2025 — Japanese automotive giant Honda is sharpening its focus on India as a pivotal market in its race to lead the global electric two-wheeler segment. The company has confirmed that it will establish a dedicated EV manufacturing facility in Karnataka, which is expected to commence production by 2028, transforming India into a strategic global hub for its electrification roadmap.
India at the Heart of Honda’s EV Strategy
Toshihiro Mibe, Director, President, and Representative Executive Officer of Honda, emphasized India’s significance in the company’s global ambitions. “India will be central to our goal of becoming the global leader in electric two-wheeler sales,” Mibe said during a recent address. The move comes as Honda ramps up its global EV initiatives, launching Activa e and Honda QC1 in India earlier this year, both of which received a strong market response.
The upcoming plant in Karnataka will integrate modular component production across multiple models, helping Honda reduce production costs and standardize parts. This modular approach will not only enhance domestic availability but will also power exports to Southeast Asia, Europe, and Japan, where Honda has already started rolling out EV models like the Honda Icon e: and the soon-to-launch CUV e:.
High-Efficiency Production to Drive Affordability and Growth
Honda’s new India-based plant will be tailored to support dedicated EV platforms, enhancing production efficiency and scalability. The use of commonized components across variants will be key to lowering the price barrier, thereby making electric mobility more accessible to mass-market consumers, especially in price-sensitive regions like South Asia and Africa.
This focus on economies of scale is a critical component of Honda’s strategy to capture 50% of the global electric two-wheeler market by 2031. The company is targeting an ambitious 15% return on sales (ROS) as part of its global growth roadmap.
Record Sales and Future Projections
In the fiscal year ending March 31, 2025, Honda reported record-breaking global sales of 2.057 crore motorcycles, accounting for around 40% of the global two-wheeler market. The company recorded its highest-ever sales across 37 countries, underscoring its continued dominance in both developed and emerging markets.
Looking forward, Honda anticipates a surge in motorcycle demand, particularly in the Global South, driven by rising incomes and youthful populations in countries like India. The company estimates that global two-wheeler demand will grow from 5 crore to 6 crore units annually by 2030.
To capitalize on this growth, Honda will continue expanding its product portfolio by:
-
Enhancing fuel economy in ICE (internal combustion engine) models
-
Introducing flex-fuel variants
-
Accelerating the development of affordable electric scooters and motorcycles
The Road Ahead
With its new EV plant in Karnataka and a focused strategy combining cost efficiency, localization, and global export, Honda is positioning itself to be a major force in the next phase of the two-wheeler revolution.
As countries around the world push for greener transportation and as consumer preferences shift, India’s role as Honda’s EV manufacturing powerhouse could redefine the company’s global footprint — and potentially the future of affordable electric mobility worldwide.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.