Honda aims to capture 40 pc of global bike market as India sales fuel growth

NEW DELHI: Honda Motor Company has announced that for the current fiscal year ending March 31, its global motorcycle unit sales are expected to reach 20.2 million units, which is approximately a 40 per cent share of its global sales.

The Asian market, including India, Indonesia, Thailand and Vietnam, accounts for 85 per cent of global unit sales (17.17 million units), and Japan, Europe and the US markets account for 6 per cent (1.2 million units), the company said at a press briefing by top Honda executives in Tokyo.

The Japanese auto giant said it is envisioning further growth in global demand for motorcycles, mainly in the region referred to as the "Global South," which consists of: Southwest Asia, whose largest market is India, as well as Indonesia, the Philippines; and Brazil and other Central and South American countries.

Regarding its India business, Honda Motor Company said it has steadily increased sales volume and the largest market share is now within reach. The company has plans to set up an electric motorcycle plant in India by 2028.

With this expected trend, the industry-wide global motorcycle sales, currently at a scale of 50 million units, is projected to grow to 60 million units by 2030, including electric vehicles.

In order to respond to this market growth and increased demand with certainty, Honda will continue introducing more competitive products, pursue carbon neutrality through various measures including electrification and further solidify its motorcycle business, with a long-term target to capture a 50% share of the global motorcycle market including electric motorcycles.

Honda plans to roll out 30 electric two-wheeler models by 2030 to meet its projected EV sales target of annual 4 million units.

Honda’s two-wheeler business clocked $3.6 billion in operating profit for the year ended March 2024. It currently produces over 20 million units every year in 37 facilities across 23 countries and regions.

The automaker also said it is exploring the possibility of relocation of its Mexico plant, in light of potential tariffs on Mexico by US President Donald Trump. Honda Motor Co makes around 9,000 units annually at its Mexican facility, which are exported to the US. “Of course there will be an effect. We’re considering relocation as a possible option but no decisions have been made,” said Minoru Kato, executive officer in charge of Honda’s motorcycle unit.