"Honda Announces $3.4 Billion Investment Plan for Electric Motorcycles Business by 2030"

Honda Motor Co. has unveiled ambitious plans for its electric motorcycle business, announcing a substantial investment of ¥500 billion ($3.4 billion) by the year 2030. This move comes with an upward revision of their annual sales target to 4 million units by 2030, marking an increase from the previous goal of 3.5 million units.

As part of its strategy, Honda intends to introduce 30 new electric motorcycle models globally by 2030 and plans to initiate the operation of dedicated electric motorcycle plants on a global scale, starting around 2027. The company revealed that new technology implementation will lead to a reduction of approximately 40% in the length of assembly lines.

Daiki Mihara, the head of Honda's motorcycle electrification development division, expressed the company's goal to offer electric motorbikes at a price equivalent to internal combustion engine (ICE) models. Emphasizing market expansion, Honda has identified India and the ASEAN region as key areas for increased market share, hinting at the likelihood of new production facilities in these regions.

Honda is actively developing lithium ferro-phosphate batteries, with plans to adopt them in 2025. The company envisions utilizing a variety of batteries with different strengths to accommodate diverse applications and expand product variations. In the mid- to long-term, Honda is exploring high-energy-density batteries, including the potential use of all-solid-state batteries currently in development, with the aim of reducing the cost of finished electric motorcycles by 50%.

With a target operating profit margin of more than 10% for its overall motorcycle business in 2030 and over 5% for electric motorcycles, Honda is positioning itself as a key player in the evolving landscape of electric mobility. The company's commitment to innovation aligns with its long-term vision for sustainable and profitable growth.

BS