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Honda Joins India’s Electric Scooter Race as Local Rivals Lead Market

Battery-swap technology and quality focus key to strategy as deliveries set for February
Japan
h 7267.TSE Blue Chip 150
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Honda Motor Co. is entering India’s electric scooter market with two models, playing catch-up with domestic rivals who have already captured significant market share in the world’s largest two-wheeler market.

The Japanese automaker unveiled the Activa e, featuring swappable batteries, and the fixed-battery QC1 model during an event in Bengaluru. The launch comes as Honda seeks to maintain its strong position in India, where it sold 2.88 million units in the first half, accounting for about 30% of its global two-wheeler sales.

The move follows successful launches by local competitors including Ola Electric Mobility, backed by SoftBank Group Corp., which has gained prominence since 2021 with scooters priced around 100,000 rupees ($1,184). Hero MotoCorp, India’s biggest two-wheeler maker, also entered the market in 2022 with similarly priced models.

Honda aims to differentiate itself through quality and after-sales service, addressing concerns that have plagued some competitors. The company plans to leverage its existing battery-swap infrastructure, initially built for e-taxis, to support the new scooters.

India’s electric two-wheeler market is expanding rapidly, with sales reaching 930,000 units in 2023, up 35% from the previous year, according to KPMG Consulting. The government targets 80% of two-wheeler sales to be electric by 2030, indicating significant growth potential in a market where electrics currently represent 6% of total sales.

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