Honda Motor Company is rapidly increasing its footprint in the global motorcycle market, targeting a 40% market share by March 2025. With India, Indonesia, Thailand, and Vietnam accounting for 85% of its worldwide sales, Honda’s strategy centers on the rising demand for motorcycles in the Global South, which includes countries like India, Indonesia, the Philippines, and Brazil.
The company predicts that global motorcycle sales will surge to 6 crore units by 2030, up from the current 5 crore. This growth will be fueled by increasing demand in these emerging markets, as well as the rising popularity of electric vehicles (EVs).
For the year ending March 2024, Honda’s two-wheeler division reported an operating profit of $3.6 billion. The company currently produces over 2 crore motorcycles annually, manufacturing these vehicles across 37 facilities located in 23 countries and regions.
By 2025, Honda expects to produce over 2 crore units, with the majority of production focused in key markets like India and Southeast Asia. This increased production will support the company’s push for a larger slice of the global market.
Electric Vehicles: A Key Focus For Future Growth
Honda’s ambitions extend beyond conventional motorcycles. The company is committed to accelerating its electrification efforts, setting a goal of capturing 50% of the global motorcycle market, including electric models, by 2030. As part of this plan, Honda intends to launch up to 30 electric two-wheeler models by the decade’s end. To meet this target, the company aims to achieve annual sales of 40 lakh electric motorcycles.
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India, a critical market for Honda, has seen the company steadily increase its sales volume. Honda now considers the country its largest market, with a substantial market share within reach. In line with this growth, the company is planning to build an electric motorcycle manufacturing facility in India by 2028.
Strategic Considerations And Challenges
As part of its global strategy, Honda is also evaluating the potential relocation of its Mexico plant. The company has expressed concerns about possible tariffs imposed by the United States, which could affect its operations in the region. Currently, the Mexican facility produces around 9,000 units annually for export to the U.S. Honda has yet to make a decision regarding this potential move.
Honda’s aggressive plans to dominate the global motorcycle market, particularly through the expansion of its electric vehicle offerings, will likely intensify competition, especially with strong domestic players like Bajaj Auto and the market leader, Hero MotoCorp.
As Honda pushes forward with its global expansion and electrification efforts, the company will face significant challenges and competition. However, its focus on the growing markets of the Global South, combined with a strategic push into electric motorcycles, positions Honda for continued success in the coming years.
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