Honda Motorcycle & Scooters India (HMSI), a leading scooter and motorcycle manufacturer is amongst the leading two-wheeler OEMs whose entry into the electric vehicle space is keenly awaited. And if things go by, what the company hopes for, it could bet on the power of partnership to take a lead in the electric two-wheeler space.
While the Japanese OEM has not yet formally announced its entry its plans to enter the Indian EV space, the company is expected to announce its formal entry with a made-in-India product on March 29, in New Delhi.
It is evident that the Indian electric two-wheeler space, which is mostly dominated by scooters is seeing a lot of competition and a lack of a charging standard and battery swapping consortium, each manufacturer may end up investing significantly. But, Honda
Responding to a query about would HMSI be open to partnering with other players to form a consortium of a sort adhering to a standardisation for battery swapping, Atushi Ogata, President, CEO & MD, Honda Motorcycle & Scooter India said, that he has “asked the headquarters to consider the same.” There is no final decision on it as of yet, and the management is closely studying the feasibility of the same.
The confidence could also come up on the fact that with the future of FAME II subsidies also being in question, and EV makers looking to make their vehicles economical without riling up losses, the ‘Battery as a Service’ business model for electric scooters and three-wheelers make business sense. In fact, one of Honda Group company, Honda Power Pack Energy India and Hindustan Petroleum Corporation
Ogata also mentioned that the Japanese OEM was also exploring various ideas to make EVs affordable. And selling an e-scooter without a fixed battery could very well be the start.
In terms of production planning, the company is optimistic that if the ongoing trends are anything go by, it will have 100 percent capacity utilisation by next year. This means, it will need to invest in new production line. At present, it has manufacturing capacity to produce 5.8 million units combined from its Gujarat plant, which it aims to expand to 6.9 million units. For the upcoming product, it is mulling the idea to produce the EVs at its Karnataka plant, which looks like a natural fit, given the adoption and supplychain ecosystem.
Export opportunities
At present, the Japanese two-wheeler maker exports 17 models to more than 38 countries. With the slew of new product launches planned it has raised the target to 20 models across 54 countries including some new European nations.
Image for representational purpose only.