Honda Motor Co., Ltd. hosted a comprehensive press briefing today, shedding light on its ambitious motorcycle business strategies and sustainability initiatives. The session was led by key executives Minoru Kato, Executive Officer and Head of the Motorcycle and Power Products Operations, and Daiki Mihara, Operating Executive and Head of the Electrification Business Unit.
A Legacy of Excellence in Motorcycle Manufacturing
Since the launch of its first production motorcycle, the Dream D-Type, in 1949, Honda has grown into the world’s leading motorcycle manufacturer. Operating in 23 countries with 37 production facilities, Honda boasts an annual production capacity exceeding 20 million units, distributed through 30,000 dealerships worldwide. The company anticipates achieving a milestone of 500 million cumulative motorcycle units by the end of 2025, a testament to its global success.
Market Insights and Growth Projections
Honda’s motorcycle sales are projected to reach 20.2 million units in FY2025, representing a 40% share of global motorcycle sales. The Asian market dominates with 85% of sales, driven by countries like India, Indonesia, Thailand, and Vietnam. The European and U.S. markets contribute 6%, where demand for high-performance, large-size models is growing.
Looking ahead, Honda predicts global motorcycle demand will climb from 50 million units in 2024 to 60 million units by 2030, spurred by rising demand in the Global South and electric vehicle (EV) adoption.
India and ASEAN: A Focus on Commuter Models
India remains Honda’s largest market, driven by popular models such as the Activa, Dio, and Shine. To further solidify its dominance, Honda plans to automate production plants, enhance sales networks, and utilize local suppliers. Honda also aims to export Indian-developed models to markets in South America, leveraging similarities in customer preferences.
In ASEAN countries, Pakistan, and Brazil, rising working populations align with increasing motorcycle demand. Honda aims to meet this growth through its robust global supply and production systems.
Europe: Reviving Iconic Models and Innovative Technologies
Catering to Europe’s demand for large-size FUN models, Honda has revived legendary brands like Hornet and Transalp and introduced advanced technologies, such as Dual Clutch Transmission and the world’s first V3 engine with an electric turbocharger. These advancements have solidified Honda’s leadership in key European markets, including Italy, Germany, France, Spain, and the U.K.
Accelerating Towards Carbon Neutrality
Honda’s bold environmental goals aim for carbon neutrality across its motorcycle products by the 2040s. This will be achieved through:
Electrification: By 2030, Honda plans to introduce 30 electric models globally, with an annual sales target of 4 million units. Recently launched electric models, such as the Activa e: and CUV e:, signify the start of Honda’s “electric globalization.”
Battery Ecosystems: Honda is expanding its battery-swapping services in India, Japan, and Southeast Asia, ensuring seamless usability for EV owners.
Resource Circulation: Partnering with local entities, Honda is exploring second-life uses for batteries and advancing recycling technologies to create a circular economy.
A Balanced Global Business
Through innovative product strategies, Honda has achieved a more balanced revenue distribution, with significant contributions from advanced markets in Europe and South America. Initiatives like flex-fuel models and the use of bio-engineered plastics further exemplify Honda’s commitment to sustainability.
Honda’s motorcycle business continues to thrive as a cornerstone of its global operations. With a focus on electrification, sustainability, and innovation, the company is well-positioned to lead the industry into a greener, more connected future.
