Honda Sets Ambitious Targets For Electric Motorcycle Business

Mobility Outlook Bureau
30 Nov 2023
12:09 PM
1 Min Read

The company aims to sell 4 million electric units annually by 2030.

Honda Sets Ambitious Targets For Electric Motorcycle Business mobility outlook

Honda Motor Company has unveiled a bold roadmap for its electric motorcycle business, announcing an increased global annual sales target of electric motorcycles to 4 million units by 2030, up from the previously announced target of 3.5 million units. The company is committed to accelerating the electrification of motorcycles and strengthening its business structure to meet the evolving demands of the market.

As part of its electrification strategy, Honda plans to introduce 30 electric motorcycle models globally by 2030. This initiative is supported by a substantial investment of 100 billion yen over the current 5-year period from 2021 to 2025. An additional 400 billion yen will be invested over the subsequent 5-year period from 2026 to 2030, bringing the total investment to an impressive 500 billion yen over the decade.

To achieve its ambitious sales target and promote the adoption of electric motorcycles, Honda is determined to reduce the cost of electric motorcycles by 50%. The company is actively pursuing cost reduction initiatives by adopting plug-in models, optimising battery cells, increasing procurement and production efficiency through common modules, and enhancing production efficiency at dedicated electric motorcycle production plants.

Honda envisions a diverse lineup of electric models, including 'FUN-oriented' models, plug-in electric models, super sports, naked bikes, off-road bikes, kids' bikes, and ATVs. The company aims to offer more than 30 electric models by 2030, ensuring a comprehensive range to cater to varied customer needs.

Connectivity features will play a crucial role in Honda's electric motorcycle strategy. The company plans to advance the Honda RoadSync connectivity service, introducing an in-vehicle infotainment (IVI) system with a suggestion-based navigation function in 2024. Additionally, a telematics control unit (TCU) will be installed in models launched in 2026, enhancing connectivity services further.

Honda is also set to explore different battery technologies, including lithium ferro-phosphate (LFP) batteries, planned for adoption in 2025. The company is considering the utilisation of all-solid-state batteries in the mid- to long-term.

With these strategic moves, Honda aims to achieve an operating profit margin of more than 5% for the electric motorcycle business and more than 10% for the entire motorcycle business by 2030. Beyond 2031, the company will continue to focus on building a highly profitable structure for its electric motorcycle business, aligning with its commitment to innovation and sustainable mobility.

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