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Honda Plans to Invest $3.3 Billion to Produce Electric Motorbikes

Honda targets 4 million e-bikes yearly by 2030 emphasizing affordability
Japan
h 7267.TSE Blue Chip 150
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Honda, the world’s leading two-wheeler manufacturer, aims to manufacture 4 million electric motorbikes annually by 2030, allocating a substantial $3.3 billion for rapid model launches. This ambitious target, up by 500,000 units from the previous announcement in September 2022, signals a significant shift, intending to meet the rising demand for electric bikes in key markets like India and Southeast Asia.

To achieve this, Honda plans to construct specialized factories dedicated to e-motorbike production. The company commits to keeping prices affordable, a strategy complemented by an investment of 100 billion yen from 2021 to 2025 for research and development and an additional 400 billion yen through 2030 for manufacturing, including the construction of exclusive e-motorbike production plants.

These plants, each receiving an investment of around 50 billion yen, are expected to commence operations from 2027, likely located in India and Southeast Asia. Honda aims to reduce product prices by half compared to current models by streamlining components, optimizing batteries, and enhancing production efficiency.

The motorcycle segment, constituting over 60% of Honda’s operating income, anticipates challenges in the initially less profitable e-motorbike market due to smaller production numbers and development expenses. However, the company aims for a 5% operating profit margin for this segment by 2030, emphasizing competitiveness through a diversified model lineup, including swappable batteries and advanced connectivity features.

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