Honda is reinforcing its position as a global leader in the motorcycle market, fueled by unprecedented sales figures and a strong commitment to electrification. In fiscal year 2025, the company reported motorcycle sales of 20.57 million units, securing around 40% of the global market share—an all-time record spanning 37 countries and regions.
The company anticipates global demand to increase from 50 million to 60 million units by 2030, with the majority of growth expected in the Global South, including India. To capture this rising demand, Honda plans to introduce region-specific products and enhance its supply chain efficiency.
In line with its environmental goals, Honda is fast-tracking the electrification of its motorcycle portfolio while continuing to improve fuel efficiency in its internal combustion engine (ICE) models and expanding its range of flex-fuel compatible vehicles. In February 2025, Honda introduced two electric scooters in India—the Activa e: and QC1—followed by the launch of the CUV e: and ICON e: across Indonesia, Vietnam, Thailand, and the Philippines. The CUV e: is also scheduled to launch in Europe and Japan later this year.
To support its electric growth strategy, Honda will establish a dedicated electric motorcycle manufacturing plant in India by 2028, leveraging modular platforms to produce more cost-effective models. The company aims to become the global leader in electric two-wheelers.
Looking ahead, Honda’s long-term objectives include reaching a 50% global market share and achieving a return on sales (ROS) exceeding 15% by fiscal year 2031 (ending March 31, 2031). These goals will be supported by a steady pipeline of new ICE and electric models, alongside a streamlined supply system.
On the financial front, Honda expects to generate over 12 trillion yen in free cash flow between 2027 and 2031. This will be powered by robust motorcycle sales and growing hybrid electric vehicle (HEV) revenues. The company has reduced its EV investment by 3 trillion yen to a total of 7 trillion yen through 2031, reallocating resources to balance both EV and HEV development. Honda also targets over 1.6 trillion yen in shareholder returns and has introduced a dividend on equity (DOE) policy to align shareholder returns with corporate growth.
By combining a solid foundation in motorcycles with strategic financial reallocation, Honda aims to achieve a 10% company-wide return on invested capital (ROIC) by FY2031, ensuring long-term value creation and market resilience.
Electric Scooter Portfolio in India
Honda currently offers two electric scooters in India:
- Honda Activa e:
Equipped with two 1.5kWh swappable Honda Mobile Power Pack e batteries, it delivers a claimed range of 102 km per charge. Powered by a 6kW permanent magnet synchronous motor, it produces 22Nm of peak torque. The scooter includes three riding modes—Econ, Standard, and Sport—with a top speed of 80 km/h in Sport mode. Acceleration from 0 to 60 km/h takes 7.3 seconds, according to Honda. - Honda QC1:
Tailored for Indian roads, the QC1 features a fixed 1.5kWh battery with a floorboard-mounted charging port. It uses a compact in-wheel motor available in two options: 1.2kW (1.6 bhp) and 1.8kW (2.4 bhp). It offers a maximum range of 80 km and a top speed of 50 km/h.