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Honda Motorcycle & Scooter India (HMSI) has laid out an ambitious roadmap to scale up to 7.7 million units annually by FY30, signaling its most aggressive push yet to challenge Hero MotoCorp’s dominance in the Indian two-wheeler market.
This means that the company intends to grow at a compound annual growth rate (CAGR) of 5.7%. This growth strategy spans product expansion, capacity enhancements, export momentum, and electrification.
At a recent internal conference, HMSI confirmed that India will be central to Honda’s global volume and EV ambitions. For FY26 alone, the company is targeting 6.26 million units, up from 5.86 million in FY25, representing a 7% year-on-year increase. The company is aiming to grow its exports by double digits to 5.6 lakh units versus 5.05 lakh units it shipped in FY-24, reinforcing India’s growing role as an export hub.
Capacity Realignment
A key part of this volume expansion is HMSI’s capacity and plant structure realignment. The Vithalapur plant, earlier dedicated to scooters, is now being retooled to produce motorcycles and “small fun” models, as well as new EVs.
A new line is being added, and the manufacturing facility is being aligned with Honda’s target of achieving a 50:50 product mix between scooters and motorcycles by FY26, bridging a long-standing gap in the commuter motorcycle segment.
The company aims to manufacture over 3 million scooters and 3 million motorcycles annually, further intensifying the volume battle with Hero across key categories.
New Products
Regarding product innovation, HMSI will launch a new 160 cc ADV scooter in Q1 FY26, targeting a more performance- and lifestyle-oriented audience. This will follow its foray into the 500cc motorcycle segment in Q4 FY26, a clear move into the premium enthusiast space where Hero currently lacks a strong presence.
In the 125cc segment—still the volume engine for the brand—HMSI will increase production capacity significantly: The company plans to increase the production of 125cc scooters by 35% and the output of 125cc motorcycles by 29%.
Autocar Professional learns that Honda Motorcycle and Scooter India (HMSI) is charting an aggressive new product roadmap between late 2025 and 2027, with plans to launch over a dozen models across electric, commuter, adventure, mid-capacity, and export-focused segments. This reflects a strategic pivot from pure-volume play to a more diversified, premium-driven roadmap.
While the company has started with Activa EV, three more electric vehicles are planned for the future. The company plans to produce 2.2 lakh EVs annually in the coming couple of years.
Parallelly, Honda is strengthening its ICE portfolio with a mix of scooters and motorcycles. These include a traditional scooter launching in late 2025, a retro-styled commuter bike such as the MC100 Classic or the Shine 100 Classic, and a 125cc model explicitly aimed at export markets. On the adventure and off-road front, Honda will introduce a mid-range ADV scooter in August 2025 and a lightweight XR250 off-roader by mid-2026, tapping into the growing enthusiast segment.
The most notable shift is Honda’s push into mid-capacity and premium motorcycles. A 500cc model is slated for launch in 2026, followed by the Rebel 300 cruiser and a low-volume niche motorcycle in 2027, collectively signaling the company’s intent to compete with established players like Royal Enfield.
Overall, the product strategy reflects a more agile and diversified approach, balancing mass-market electric mobility with aspirations of brand elevation and global export growth.
EV Push
HMSI’s electric vehicle ambitions will also witness an expansion. Starting at a very low volume of just 7000 units in FY25, EV production is expected to jump four fold to over 30,000 units in FY26, yet it will be a very miniscule given the growing Indian EV scooter space.
With long-term prospects in mind, the roadmap includes full localisation of EV components, battery pack innovations, and the integration of sustainable materials for its Activa Electric (E1) and upcoming models.
Parent company Honda Motor Co. is working on establishing a dedicated electric motorcycle plant in India by 2028, likely in Karnataka. The facility will serve the domestic market and act as a production base for other emerging markets. The company has confirmed that India will play a “central role” in Honda’s global electrification strategy, supporting next-gen battery tech, reuse, and component innovation.
Cost Optimisation, Localisation, and Supply Chain
Also, as part of its “Make in India” initiative, HMSI is targeting a 38% cost reduction across its product lines. Key levers include:
- Increase localisation from 62% to 82%
- Volume consolidation of key components like semiconductors and powertrain parts
- Reducing import dependency (e.g., 91% of Printed Wiring Boards are currently imported)
The company’s cost-down framework was built around three pillars: weight and material reduction across 500 components, improving process optimisation with over 300 initiatives, rationalising the supplier base, and increasing competitive sourcing and localization across 91 categories.
In line with Honda’s global sustainability vision, HMSI achieved a 6.08% reduction in CO₂ emissions in FY25 and reiterated its long-term commitment to net-zero emissions by 2050. The push includes process optimisation, green logistics, and supplier-side energy efficiencies.
Closing the Gap with Hero
In FY25, HMSI posted an 18% growth, outpacing the industry’s 7.4% expansion and gaining 260 basis points of market share. While Hero MotoCorp retains the lead in overall volumes, HMSI is rapidly narrowing the gap through premiumisation, diversification, and deep localisation. With EVs starting to be more meaningful, production realignment underway, and new models entering underserved segments, Honda is firmly moving beyond its scooter-dominated legacy.
The race with Hero has now entered a decisive phase, and Honda is no longer content with second place; it’s in full throttle pursuit of the crown.
This article first appeared on Autocar
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