Honda Launches Electric Scooters, Banked on ‘Trust’
Honda Launches Electric Scooters Honda Motorcycle and Scooter India (HMSI) has officially entered the electric scooter market. The company unveiled its first two models: the Activa E, which runs on swappable batteries, and the QC1, which uses a fixed battery. With these launches, HMSI aims to capitalize on “trust and reliability,” according to Yogesh Mathur, Director (Sales & Marketing).
Trust as a Key Selling Point
Mathur emphasized that trust is the most important factor for consumers in the electric vehicle (EV) market. “Many customers are not satisfied with the current options available,” he said. HMSI plans to address this by offering products that consumers can depend on.
Optimistic Long-Term Market Outlook
While the growth of the electric two-wheeler market has slowed in recent months, HMSI remains optimistic. Tsutsumu Otani, HMSI’s President, explained that electric vehicles are essential for India’s push toward carbon neutrality. However, he also noted that biofuels and CNG-powered vehicles will play a significant role in the future.
Impressive Sales Growth
HMSI, India’s second-largest two-wheeler maker, has reported a strong sales performance. The company sold 3.43 million units from April to October 2023, reflecting a 28.7% year-on-year growth. Despite this success, Mathur expects growth to slow in the coming year, citing expected price hikes due to new emission norms (OBD-2B), which will take effect in April 2024.
Booking and Service Strategy for E-Scooters
HMSI will begin accepting bookings for its new electric scooters on January 1, 2024, with deliveries starting in February. The company plans to build consumer confidence by establishing a strong service network before launching sales. Mathur highlighted that HMSI will upgrade over 1,000 of its 6,000 sales and service touchpoints to support electric vehicle sales.
Honda Joins the Competitive E-Scooter Market
HMSI is the last major two-wheeler company to Honda Launches electric scooter in market, following competitors such as TVS Motor, Bajaj Auto, and Hero MotoCorp. Despite the competition, Otani remains confident, setting a target of 100,000 units of e-scooters to be produced and sold in the first year.