Honda’s Slow but Steady EV Play: Japanese Giant Watches India’s First-Gen E2W Battery Cycles Before Accelerating Push

Honda Motorcycle & Scooter India (HMSI), a late entrant in the country’s electric two-wheeler (E2W) segment, is in no rush to flood the market with EVs. Instead, the Japanese giant is closely monitoring the ownership experiences of early adopters to shape its long-term electric strategy. With an eye on battery deterioration patterns, Honda intends to use real-world insights from its initial electric offerings—Activa Electric and EM1 e: (QC1)—to define the next phase of its EV roadmap.

“In India, ICE customers typically use their vehicles for 10–15 years. But maintaining an EV for that long is difficult, especially due to battery degradation after 4–5 years,” said Tsutsumu Otani, Managing Director, President & CEO of HMSI. “This is a critical juncture. We are keenly watching consumers’ decisions once battery performance starts dropping—will they swap batteries, replace vehicles, or shift preferences altogether?”

This year marks a pivotal moment as India’s first generation of EV customers—those who adopted electric scooters in 2020–2021—begin to experience battery wear. Honda believes this consumer behavior and residual value perception will be an essential barometer for future adoption trends, policy alignment, and product planning.

Strategic Dual Approach: Battery Swapping and Home Charging
Honda’s first two electric scooters are part of a cautious market-entry strategy. The Activa Electric, featuring a swappable battery model, is restricted to Bengaluru and has yet to gain significant volume traction. Alongside it, the QC1 allows home charging. But it’s the battery ownership model that Honda sees as the game-changer.

“With battery swapping, the battery remains with the OEM, not the consumer. This allows us to control battery health and assure performance. But if the customer chooses home charging, it’s difficult for us to guarantee battery life,” Otani explained. “Our strategy offers both—letting the customer choose but aligning our long-term quality assurance with the swappable model.”

This hybrid strategy allows Honda to cater to a wide spectrum of urban mobility users while gathering essential field data on battery usage patterns, especially around charging behavior, performance decline, and replacement cycles.

A Committed Long-Term Bet
Despite its slow start, Honda insists its EV commitment is firm. The company has already committed to producing 2.2 lakh electric two-wheelers annually in the near term and has three more EV models in the pipeline for the Indian market.

At a global level, Minoru Kato, Executive Officer of Honda Motor Co., confirmed the plan to launch at least one electric two-wheeler model globally every year, although specifics about India launches remain under wraps.

Moreover, India is central to Honda’s EV production vision. A dedicated EV plant in Karnataka, set to be operational by 2028, will anchor future launches. This comes alongside an ambitious plan to expand Honda’s annual two-wheeler production capacity in India to 7 million units by 2027, with further scale-up to 7.7 million units by FY30, according to Autocar Professional’s exclusive reporting.

Watching the Market, Learning Before Scaling
India’s electric two-wheeler market clocked 1.15 million units in FY25, growing 21% YoY, and EV penetration now stands at 6–7%. While startups initially dominated the space, legacy players like TVS and Bajaj have significantly upped their game. Hero MotoCorp is also steadily gaining share. Honda, meanwhile, is opting for measured participation—observing consumer pain points and aligning infrastructure, rather than chasing first-mover advantage.

The strategy, while slow, is calculated. By waiting for clear signs of how Indian consumers value EVs over a full lifecycle, especially post-battery degradation, Honda aims to optimize its product strategy, cost structures, and support systems for India’s unique usage patterns.

Additionally, the company is scaling up exports, aiming to ship 5.6 lakh units in FY26, up from 5.1 lakh units in FY25, focusing on Latin America and Europe as key target markets.

Honda may be a latecomer, but it’s not reluctant. Its leadership believes real-world battery behavior will dictate the scale and structure of EV adoption in India. For Honda, this is not about being fast—it’s about getting it right.

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