Honda Motorcycles & Scooters (India), the only major two-wheeler brand without an electric offering yet, will make battery packs locally with Haryana-based Navitasys in a tie-up that could alter the competitive dynamics in an industry segment that’s at the vanguard of the green transformation in personal mobility.
“Honda is charting a course to launch an electric model, collaborating with NVT Power (which is Navitasys in India) for battery supplies,” said one of the multiple industry sources ET spoke with on the subject.
The source added that by 2040, the Japanese auto major aims to electrify its entire two-wheeler lineup.
“An electric launch next year could bolster Honda’s market position, positioning it as a formidable challenger to Hero,” this person said.
Queries sent to Honda and Navitasys remained unanswered until the publication of this report Monday.
While the specifics of the tie-up could not be ascertained, Honda had revealed its EV roadmap for the Indian market in March this year. That entailed introducing two electric scooters in India in 2024, including the electrified version of the Activa. Moreover, it said it aims to reach one million annual EV production by 2030.
Honda had announced that it is developing EVs from the ground up and will be based on a platform called ‘Platform-E’ which will serve as the foundation for several electric two-wheelers, including fixed and swappable battery-type models. It went on to say that it plans to have ten electric two-wheelers in its portfolio over the next five years.
ICE Share Melting Away
As per estimates, India’s two-wheeler sales are projected to hit 28 million units by 2030, growing at a CAGR of 7.2%. By then, over 42% of these sales are anticipated to be electric.
“Currently, Honda holds a 22% market share, but this could decrease due to emerging electric two-wheeler brands like Ola, Ather, Hero Electric, and Ampere,” an analyst who did not wish to be named said.
However, with Honda cementing its partnership with Navitasys which is a lithium-ion battery manufacturer, analysts said it was evident that while they may be a late entrant into the EV two-wheeler space, they intend to cruise onto the scene in style.
As per their website, Navitasys, which is the Indian branch of NVT Power, has four verticals – smartphone batteries, electrical vehicle batteries, power banks and printed circuit board assembly (PCBA). Its headquarters and largest facility is in Bawal, Haryana while the second facility is located in Manesar.
“Large OEMs like Honda are assemblers of parts and hence will not manufacture batteries themselves so it makes sense for them to tie up with local battery pack manufacturing players,” another auto analyst told ET on the condition of anonymity.
He added that their move towards announcing a slew of EV two wheeler offerings in India next year shows a shift in their strategy.
‘Future of Mobility’
“Initially, Honda was reluctant to accept EVs but has now warmed up to the idea of EVs being the future of mobility. While Honda may be among the last to enter the space, I don’t see it as much of a downside as EV penetration is about 5% in India. If they get the product and pricing right, capturing the market won’t be an issue as Activa is a popular offering in the scooter segment,” this person said.
In 2022, ET had reported that Honda Motor would start offering battery-swapping service to electric three-wheelers in Bengaluru in a bid to test the market in India’s tech capital before entering other cities and the two-wheeler segment with the service.
Only last week, HMSI reported its revenues for the financial year 2022-23 as INR 27,598 crore, a 22 % jump since the last financial year.
“The company further reported a net profit of INR 1,851 cr during the same fiscal. This is a 85 % increase from the last financial year. The company’s total expenses for the fiscal were reported as INR 25,107 crore,” market intelligence firm Tofler said in a statement.
