Honda Motor Co. aims to secure 50% of the global motorcycle market as overall sales of two-wheelers, including both gas and electric models, are projected to hit 60 million units annually by 2030. The company anticipates its global motorcycle sales will reach 20.2 million for the fiscal year ending this March, translating to approximately 40% market share. Honda’s goal is to eventually achieve a 50% share, encompassing electric bikes as well. The company expects significant growth from regions it refers to as the Global South, particularly India, Indonesia, the Philippines, Brazil, and other countries in South and Central America, although no specific timeline for this goal has been provided.
Honda’s two-wheeler division reported an operating profit of around $3.6 billion for the 12 months ending March 31, 2024, marking a nearly 14% increase from five years prior. However, rising living costs may make motorcycles unaffordable for some of the world’s poorest families, and the increasing demand for e-bikes faces challenges from stricter emissions regulations in China, the US, and Europe. Currently, Honda produces over 20 million units annually across 37 facilities in 23 countries and territories. This profitable segment is expected to gain even more importance as Honda explores plans to integrate struggling Nissan Motor Co. into its operations. Minoru Kato, the executive officer overseeing Honda’s motorcycle division, expressed confidence that the two-wheeler segment will remain unaffected by the Nissan deal, emphasizing the need to identify synergies during negotiations.
Honda may encounter tariff-related challenges, as it manufactures around 9,000 units annually at a factory in Mexico, most of which are imported into the US. Kato acknowledged the potential impact of tariffs, stating, “Of course there will be an effect. We’re considering relocation as a possible option, but no decisions have been made.” As part of its electrification strategy, Honda plans to introduce 30 electric models globally by 2030, aiming for annual electric sales of 4 million units by that year. Additional initiatives include developing battery reutilization and recycling processes, reducing e-bike costs, and enhancing the environmental sustainability of its factories through solar power installations.
In India, where Honda seeks to dominate the electric motorcycle market, the company has launched a battery sharing and swapping service to alleviate long wait times at charging stations. Furthermore, Honda intends to establish an electric motorcycle manufacturing plant in India by 2028. However, the Indian market is competitive, with strong local players such as Hero MotoCorp Ltd. and Bajaj Auto Ltd.
