Honda To Make Battery Packs In India With Navitasys, Boosts EV Ambitions
In a strategic move that aligns with Honda“s electric vehicle (EV) roadmap for the Indian market unveiled earlier this year, Honda Motorcycles & Scooters (India) is set to partner with Haryana-based Navitasys for local production of battery packs. This development marks a significant step for Honda, a major two-wheeler brand in India that currently lacks an electric offering, and is poised to reshape the competitive landscape in the rapidly evolving EV sector. Although the exact details of the partnership are yet to be disclosed, it”s evident that Honda is gearing up to enter the Indian electric vehicle market with a comprehensive approach.
As part of its EV roadmap, Honda plans to introduce two electric scooters in India by 2024, including an electrified version of the popular Activa. Furthermore, Honda aims to achieve an annual EV production of one million units by 2030, signaling a substantial commitment to electric mobility. The company is developing EVs from the ground up, based on a platform called “Platform-E,” which will serve as the foundation for a range of electric two-wheelers, including fixed and swappable battery models, with a goal of having ten such electric vehicles in its portfolio within the next five years.
With India”s two-wheeler sales projected to reach 28 million units by 2030, growing at a CAGR of 7.2%, and over 42% of these sales expected to be electric by then, this partnership positions Honda as a significant contender in the evolving EV landscape. Currently holding a 22% market share, Honda faces competition from emerging electric two-wheeler brands such as Ola, Ather, Hero Electric, and Ampere. By teaming up with Navitasys, a lithium-ion battery manufacturer with expertise in various battery- sectors, Honda is well-prepared to make a noteworthy entrance into the electric two-wheeler market.
This partnership signifies a change in strategy for large OEMs like Honda, who typically assemble parts rather than manufacture batteries themselves. It also reflects Honda”s acknowledgment of EVs as the future of mobility, despite their initial reluctance. While they might be latecomers to the EV space in India, the low current EV penetration of around 5% in the country means there”s ample room for growth, and leveraging their popular Activa brand could be a key advantage. Additionally, Honda”s plans to offer battery-swapping services for electric three-wheelers in Bengaluru demonstrate their commitment to testing and expanding their presence in the electric vehicle segment. Honda”s recent financial performance, reporting a 22% increase in revenue for the 2022-23 fiscal year, along with an 85% rise in net profit, indicates their strong determination to thrive in the Indian EV market.
