Honda Motorcycle and Scooter India (HMSI) is recalibrating its electric vehicle strategy after studying customer concerns around battery life and resale value, according to President and CEO Tsutsumu Otani. As reported by Business Standard, the company will launch another electric scooter this year as part of its strategic adjustment. The EV journey has been relatively slow since the launch of the Activa e: and QC1 in early 2025, with the company dispatched 5,445 e-scooters to dealers in the first year and customer deliveries of 3,723 units during the period.
Demand has picked up gradually this year, with cumulative retail sales crossing 6,250 units by the end of June, making it the company's best month for EV deliveries so far. However, HMSI temporarily halted production from August 2025 due to high dealer inventory. According to Business Standard, Otani expects HMSI's overall domestic sales to grow by 5-6 per cent in 2026-27, with production capacity remaining the key constraint. The company's domestic sales in 2025-26 stood at 5.75 million units, up 9 per cent year-on-year, while exports rose around 15 per cent YoY to 620,000 units. As reported by Business Standard, Otani noted that while HMSI has strong production capacity, current limitations constrain the ability to meet higher demand, with the company expecting domestic sales to exceed 6 million units.
Otani highlighted significant differences between internal combustion engine and EV business models, as reported by Business Standard. In the ICE segment, customers expect vehicles to retain value even after five years, while EV customers are still learning about battery technology and long-term value development. The company is closely analyzing customer behavior and market trends, including how resale values evolve as more used EVs enter the market. Otani emphasized that customers are concerned about how quickly EV values may decline, prompting the strategic recalibration. He noted that since the EV market is still at an early stage, HMSI is deeply analyzing EV value from a customer's perspective and recalibrating strategy accordingly.
Confirmed by Otani, HMSI will expand its EV portfolio this year with plans to launch one product this year. On the pace of electrification, Otani said customer demand would remain the deciding factor, with the transition depending on government strategy. Regarding Delhi's proposal to completely stop registrations of new ICE two-wheelers from April 2028, Honda will comply with government policy but expects the transition to differ between scooters and motorcycles, as reported by Business Standard. Otani noted that while the shift from ICE to EV may be relatively easier for scooters due to similar usage patterns, the transition for motorcycles may be more gradual, requiring recognition that the 2W market is not uniform.
