Honda Motorcycle & Scooter India Gears Up for Premium and Electric Push in FY27

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Honda Motorcycle & Scooter India (HMSI), the country’s second-largest two-wheeler manufacturer, is set to transform its portfolio with a strong focus on premium motorcycles and electric scooters. The Japanese giant aims to align with evolving Indian rider preferences, moving beyond its traditional strength in commuter segments.

Shifting Gears: From Commuters to Premium Motorcycles

HMSI has long dominated the scooter market, particularly with the iconic Activa, and maintained solid volumes in entry-level motorcycles. However, its motorcycle sales remain heavily skewed toward 110-125cc commuters (around 81% of volumes). The 151-350cc segment contributes just 13%, indicating significant room for growth in higher-displacement categories.

To capture the rising demand for premium and lifestyle-oriented bikes driven by higher disposable incomes, HMSI plans to launch 2-3 new premium motorcycles above 200cc this financial year. These launches will strengthen its BigWing network and target enthusiasts seeking performance, touring, and adventure capabilities.

Recent moves already signal this direction. In June 2026, HMSI introduced E-Clutch technology on the CB750 Hornet (₹10.49 lakh) and XL750 Transalp (₹13.20 lakh), alongside updates to the Gold Wing and CBR1000RR-R Fireblade SP. These additions bring advanced features like clutchless shifting, multiple riding modes, and premium suspension to Indian roads.

The company is also ramping up localisation efforts for higher-cc models and expanding manufacturing capacity to support this premiumisation strategy. New production lines at its Tapukara (Rajasthan) and Vithalapur (Gujarat) plants aim to push total capacity toward 8 million units by FY28.

Entering the EV Scooter Arena More Aggressively

HMSI entered the electric two-wheeler space in 2025 with the Activa e: and QC1, but initial sales have been modest compared to rivals like TVS iQube, Bajaj Chetak, and Ather Rizta. The company sold a few thousand units in FY26 while focusing on building infrastructure and addressing customer concerns around range, battery life, and resale value.

Recognising the rapid growth of the EV scooter segment, HMSI has confirmed plans to launch new electric scooter models this financial year. President & CEO Tsutsumu Otani emphasised a “multi-pathway” approach — combining ICE, EVs, and alternative fuels like flex-fuel technology (leveraging Honda’s global ethanol expertise from Brazil).

The company is recalibrating its EV strategy based on real customer feedback and plans a more calibrated rollout tied to charging infrastructure development. Recent months have shown improving momentum, with Honda posting its best-ever monthly EV sales in June 2026.

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