Honda positions 2024 as the inaugural year for the global expansion of its electric two-wheelers, marking the beginning of a full-scale entry into the electric motorcycle market. New Delhi: As part of its electric two-wheeler plans, Honda Motor Corporation will soon introduce a model equivalent to a 110cc ICE (internal combustion engine) option equipped with two Honda Mobile Power Packs.
“This includes an India-specific model that maintains the practicality of mass-market models and a global model featuring advanced equipment such as in-vehicle infotainment,” the Japanese automaker has stated in its Honda Report 2024 uploaded on its website a few weeks ago.
The global model will be launched in Indonesia first followed by sequential releases in Japan and Europe. From 2025 onwards, Honda will be expanding the variety of electric two-wheelers, including fun models and plug-in rechargeable commuter models. “This will aim to increase our market share globally and establish ourselves as a leading company in electric motorcycles,” adds the company.
Honda positions 2024 as the inaugural year for the global expansion of its electric two-wheelers, marking the beginning of a full-scale entry into the electric motorcycle market. The period up to 2026 is defined as the market entry phase, 2026 to 2030 as the business expansion phase, and post-2030 as the full-scale business growth phase. Honda will strategically promote the introduction of electric motorcycles into the market throughout these phases.
Youth power
According to the company, the two-wheeler market is expected to continue expanding, particularly in countries with a high proportion of young people. In India, the world’s largest motorcycle market, there is a rapid increase in demand for electric two-wheelers, supported by favourable policies.
Other countries face “varying challenges” related to infrastructure, such as stable power supply and charging networks, and differences in government sales support and industry development measures. However, the long-term trend toward the expansion of electric two-wheelers is anticipated to continue.
Taking this situation into account, Honda will “strategically allocate resources based on the pace of expansion” for ICE motorcycles and electric two-wheelers in each market. This way, it will be leveraging its strengths to compete with emerging electric manufacturers.
In the near term, Honda will introduce battery-swapping models with the Honda Mobile Power Pack, targeting the rapidly growing electric motorcycle markets in India and ASEAN countries while “aiming to enter and expand sales” in these markets. By 2025, the company plans to launch models with fixed batteries, broadening the product lineup.
Leveraging ICE skills
In the short term, Honda will leverage existing ICE parts for rapid electric development. In the long term, in order to address diverse global needs, it will “proactively apply” the knowledge gained from ICE vehicles to quickly and efficiently market a variety of electric two-wheelers. “We will modularise the battery, power unit and body. By sharing these modules, we will create cost advantages and offer a diverse range of variations,” says Honda in the report.
One of the major advancements in electrification is connectivity. Building on its strengths developed with ICE vehicles, Honda will strive to enhance comfort and convenience through connectivity. Additionally, it plans to offer electric two-wheelers that continue to evolve after purchase through over-the-air (OTA) software updates, leveraging advanced software technology.
The 2024 battery-swapping model will feature “a proposal-type navigation function” for easy access to charging station information. Future models will use data from both ICE and electric vehicles to offer personalised features and experiences, advancing Honda’s unique connectivity.
Batteries are key
The company has reiterated that batteries are the cornerstone of electric two-wheelers. Keeping this in mind, it will strategically develop cell procurement and pack production allocation, primarily in Asia, to support both motorcycles and power products.
In addition to the nickel cobalt manganese (NCM) used in the current models, Honda is also “accelerating the development” of a battery system equipped with lithium iron phosphate (LFP) cells, aiming for application in models released from 2025 onwards. By having a variety of batteries, each with different strengths and costs, it hopes to offer products that meet a wide range of needs.
“We will also introduce models equipped with more advanced next-generation batteries around 2030. This will ensure stable supply, enhance product appeal and cost competitiveness, and promote further adoption and expansion of electric motorcycles,” Honda has said in its report.
For electric two-wheelers, Honda will maximise the use of “existing ICE business assets” to ensure cost competitiveness during the market entry phase up to 2026. Beyond this year, in the business expansion phase, it will commence global production of electric two-wheelers in dedicated factories optimized for EVs and aim to achieve sales of four million units by 2030.
Greater efficiencies
“These specialised factories will incorporate modular platform technologies and other innovations, reducing assembly line length by approximately 40% compared to existing factories, thereby enhancing efficiency and automation,” states Honda.
To build a more competitive system, the Japanese automaker will consider shifting from procuring finished parts to in-house processing, assembly, and logistics. The reevaluation of each step in the process will improve the cost competitiveness per finished vehicle.
In production, procurement, and development, Honda will leverage existing ICE motorcycle assets while making proactive investments. With a global sales network of 30,000 stores and enhanced online sales, Honda aims to maintain its position as the top seller in the electric vehicle era.
Fun motorcycles
In addition to developed countries, continues Honda, demand for fun motorcycles is also expanding in China and other emerging Asian countries. To enrich the motorcycle experience and offer both the enjoyment of manual transmission and the “comfortable touring characteristics” of automatic transmission models, the company has introduced the world’s first motorcycle with an electronic-controlled clutch, “Honda E-Clutch.” This new value technology has been “highly praised, and we plan to expand its application to more models in the future”.
From the company’s point of view, motorcycles play a vital role in supporting people’s lives, especially in emerging countries like those in Asia, serving as a central element of social infrastructure. To realise a “safe and secure mobility society”, Honda will expand models equipped with advanced safety technologies such as advanced brakes and LED lighting to enhance rider visibility and recognition, while also continuing global safety driving education.
In addressing environmental challenges, Honda will accelerate efforts beyond electrification of power units to achieve carbon neutrality. These include improving fuel efficiency in the ICE sector, developing technologies for bioethanol fuel as an alternative to petrol, expanding the use of biomass resin materials, and achieving carbon-neutral factories tailored to regional characteristics. “By pursuing these initiatives, Honda aims to become a frontrunner in environmental sustainability,” it has said in the report.
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