The rapid expansion of India’s two-wheeler electric vehicle (EV) sector has encouraged global automaker Honda to enter the market through its local subsidiary, Honda Motorcycles & Scooters India (HMSI). HMSI intends to launch ten electric vehicles in India, including two this fiscal year. Honda’s arrival will intensify competition in a category with 15 competitors already.
While the total two-wheeler market in India has been stagnant for many years, EV penetration has increased. In FY23, 15.8 million two-wheelers (including motorcycles, scooters, and mopeds) were sold. Although this is 17% more than the 13.47 lakh units sold in FY22, it is still much down than pre-covid levels. Domestic two-wheeler sales in India surpassed 16 million units in FY16 and peaked at 21.18 million units in FY19.
However, the EV category has done well. In FY23, total EV two-wheeler sales reached 8.46 lakh, up 158% from 3.27 lakh in FY22. 7.28 lakh units were sold in the high-speed market (peak speeds exceeding 25 kmph). That’s a penetration rate of more than 5%.
