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In a bold move towards sustainability and innovation, Honda has announced a staggering ¥500 billion ($3.4 billion) investment in its electric motorcycle business by the year 2030. This substantial commitment is part of Honda’s broader strategy to shape the future of two-wheeled transportation, emphasizing a transition towards electric mobility.
The Japanese automotive giant has set its sights high. It is revising its target for annual electric motorcycle sales to 4 million units by 2030. This is a significant increase from the initial goal of 3.5 million units. This ambitious endeavor positions Honda as a frontrunner in the global electric motorcycle market.
Honda plans to introduce 30 new electric motorcycle models worldwide by 2030, marking a pivotal shift towards sustainable transportation. Additionally, the company intends to establish dedicated electric motorcycle plants globally, with operations expected to commence around 2027.
During an online news briefing, Daiki Mihara, head of Honda’s motorcycle electrification development division, emphasized the company’s commitment to making electric motorbikes affordable. “We aim to sell electric motorbikes at the same price as ICE models,” he stated, referring to internal combustion engines. Honda envisions India and the Association of Southeast Asian Nations (ASEAN) region as strategic areas for market expansion. The brand envisions the possibility of new production facilities in these regions.
Honda is investing in the development of lithium ferro-phosphate batteries, with plans to adopt them in 2025. The company believes in having a diverse range of batteries. Each comes with unique strengths in terms of output range. The cost will enable them to cater to a broader spectrum of applications and expand product variations.
Furthermore, Honda is exploring mid- to long-term strategies for batteries with high energy density. This includes the potential use of all-solid-state batteries currently under development. The company aims to reduce the cost of finished electric motorcycles by an impressive 50%.
With an eye on financial sustainability, Honda is targeting an operating profit margin of over 10% for its overall motorcycle business and over 5% for electric motorcycles by the year 2030. This financial foresight indicates the company’s commitment to ensuring the economic viability of its electric endeavours.
Honda’s significant investment and targets in electric motorcycles underscore its commitment to shaping a sustainable future. Positioned as a key player in the electric mobility revolution, Honda’s focus on affordability, technology, and global expansion aims to redefine the electric motorcycle landscape, contributing to a cleaner, greener future.