Honda to invest over $3 billion in Electric two-wheelers by 2030
Honda is set to invest $3.4 billion for production of electric two-wheeler by 2030 and have planned to launch over 30 models.
Japanese automotive giant Honda is set to make a significant leap into the electric two-wheeler market, announcing a whopping investment of 500 billion yen ($3.4 billion) in the production of electric motorcycles and mopeds by 2030.
As the world’s largest producer of two-wheelers, Honda has ambitious plans to revolutionize the electric mobility sector. The company aims to launch 30 new electric models by the end of the decade, signalling a commitment to innovation and sustainability. Additionally, Honda had set an ambitious target to reduce the current cost of electric motorcycles by an impressive 50%.
In a statement released on Wednesday, Honda outlined its strategic approach to electrification, stating, “For the electrification of its motorcycles, Honda is investing 100 billion yet over the five-year period from 2021 to 2025, and will invest an additional 400 billion yet over the five-year period from 2026 to 2030.”
This substantial investment aligns with Honda’s broader vision to enhance its global annual sales target for 2030, now aiming for four million units, up from the previously stated goal of 3.5 million announced last year.
To achieve these objectives, Honda plans to leverage its existing infrastructure for internal combustion engine models initially. However, the company is preparing for the future by establishing dedicated electric motorcycle production plants, anticipated to commence operations around 2027.
In a bid to enhance customer experience and adapt to evolving trends, Honda is set to introduce online sales, allowing customers to purchase motorcycles without the need for in-person visits to dealers.
The global electric motorcycle market, currently valued at $30 billion in 2022, is expected to witness significant growth, projecting nearly a 19% annual increase between 2023 and 2030, as per Grand View Research. This surge is attributed to rising public concerns about fuel costs and the increasing focus on combating climate change.
Ms Kalinga