Honda's e2W Strategy Falters as 85% of Stock Remains Unsold

When it made its much-hyped debut in the electric two-wheeler (e2W) space late last year, Honda Motorcycle & Scooter India (HMSI) announced it is expecting one-third of its overall sales to accrue from the segment by 2030.

- NITIN KUMAR

If morning shows the day, that grandiose announcement looks increasingly like a mirage.

Roughly seven months after its foray into e2W—HMSI's portfolio comprises Activa e and QC1—the company has managed to sell only 15%, or 1,662 units, of its production as of July-end, according to Vahan data. That means a staggering 85% remain unsold at factories and dealerships. HMSI's electric share is now less than 0.1% of its overall sales. In comparison, Bajaj, TVS, and Hero MotoCorp have EV contributions of 14%, 8%, and 1.6%, respectively. Overall EV penetration in the two-wheeler market has already reached around 7%.

While HMSI didn't respond to FE's queries, HMSI president Tsutsumu Otani in a media interaction this July termed the e2W strategy a "patient" one and said it is taking a measured approach rather than rushing to flood the market with electric vehicles. The company is carefully studying the ownership experiences of early users to form its long-term electric vehicle strategy. By analyzing battery degradation patterns from its initial models, HMSI aims to refine its future electric vehicle roadmap.