Honda Motorcycle & Scooter India anticipates gaining increased insight into the dynamics of India’s used electric two-wheeler market within the next three years as it scrutinizes resale values, battery health and long-standing ownership characteristics. The manufacturer is seeking to better understand customer behavior around electric vehicles after several years of use, as India’s first generation of electric two-wheelers begin to appear for resale.
As part of this study, HMSI looks to battery replacement requirements and overall value of electric vehicles throughout their operating life. In an exclusive interaction with Autocar Professional, HMSI President and CEO Tsutsumu Otani highlighted the significance of the work underway. “We are studying how to solve residual value and how to ensure the value of the vehicle throughout the time it is owned. This is a very important topic, not only in terms of introducing new vehicles,” he said.
Otani’s comments reflect a broader industry reality in India — conventional petrol two-wheelers have seen buyers demand that vehicles hold value after five or more years of use and remain serviceable for a decade or longer. Electric two-wheelers factor in different considerations, primarily around battery degradation and the cost or practicality of eventual replacement. As early adopters who purchased electric scooters in the initial years of the market now approach the point at which battery performance may begin to degrade, Honda is observing to see if owners are inclined to replace the battery, sell the vehicle or revert to conventional alternatives.
By building up knowledge of how residual values evolve and how owners treat their electric two-wheelers as they age, HMSI will be better positioned to hone its product strategy, after-sales offerings and overall value proposition. The company does not view residual value as a mere ancillary consideration but a core pillar that will underpin future customer confidence and the rate of wider adoption of electric vehicles. This measured strategy ties in with Honda’s multi-powertrain approach in India — the manufacturer continues to offer a combination of conventional, flex-fuel and electric vehicles, rather than adopting a single powertrain exclusively.
As more used electric two-wheelers come to market over the next few years, the findings that Honda builds around battery health, ownership costs and resale performance are anticipated to shape its approach to electric models and support it in engaging with customers throughout the lifecycle of ownership.