The Economic Times (India)
Bullish on Indian 2W market: Honda
New Delhi: Japan's Honda Motor Co is bullish on the long-term potential of the Indian two-wheeler market where rising personal mobility needs, more women in workforce and growing demand for premium products are expected to continue supporting industry growth, according to the top official of its Indian two-wheeler arm.Honda Motorcycle and Scooter India (HMSI), the company's two-wheeler arm in India, will bring new products aligning with the evolving customer needs and is gearing up fresh models to be launched in the second half of this year in order to tap festive season sales, its President and CEO, Tsutsumu Otani told PTI in an interview.In the ongoing fiscal, the company expects the two-wheeler industry in India, which witnessed a strong performance in FY26, to continue its growth trajectory albeit at a more moderate pace, he said."In the long term, we remain confident about the growth potential of the Indian two-wheeler market. Improving rural infrastructure, rising personal mobility needs, increasing participation of women in the workforce, and growing demand for premium products are expected to continue supporting industry growth," Otani said when asked about the outlook of the industry.The two-wheeler industry witnessed a strong performance in FY2026, driven by factors such as rural recovery, premiumisation, improving exports, and supportive policy measures, he noted.Two-wheeler wholesales in India in FY26 were at 2,17,05,974 units as against 1,96,07,332 units in FY25, up 10.7 per cent, as per Society of Indian Automobile Manufacturers (SIAM) data.Looking ahead, Otani said,"The industry is expected to continue its growth trajectory, although at a more moderate pace." For FY2027, he said,"We remain focused on delivering sustainable growth. We are optimistic about the first half of the year, supported by healthy domestic demand and positive industry fundamentals."However, Otani said,"the outlook for the second half remains dependent on several external factors, including the monsoon, which influences rural incomes and demand, as well as geopolitical developments that could impact logistics costs, raw material prices, and overall market sentiment."When asked about the company's product pipeline for the market, he said,"Our focus remains on delivering products that align with evolving customer needs while strengthening both our domestic business and export footprint."Asserting that "India continues to be a key market for Honda globally", Otani said,"We remain committed to creating sustainable long-term value by responding proactively to changing market dynamics and customer expectations."Asked about new products for the year, he said,"Honda plans to introduce new models in the second half of the year, with business activity typically picking up from the Diwali season onwards." Otani, however, did not elaborate on the details.Commenting on the company's electric mobility roadmap, he said it "remains an important pillar of Honda's long-term vision, and we continue to strengthen our readiness to expand our EV portfolio in line with evolving market demand and ecosystem development."He further said,"Our approach is focused on delivering practical, scalable, and customer-centric solutions." Noting that Indian consumers have diverse mobility requirements, he said the choice between ICE and electric vehicles will ultimately depend on factors such as affordability, convenience, charging infrastructure, and usage patterns.While EVs offer lower running costs, their adoption will continue to vary across regions depending on infrastructure readiness and local conditions."Therefore, we believe multiple technologies including ICE, EVs, and alternate fuels are likely to coexist for the foreseeable future," Otani stated.He further said,"Our focus remains on delivering practical, reliable, and customer-centric mobility solutions that are aligned with market needs."As demand evolves and the ecosystem matures, he said Honda will continue to respond "proactively with solutions that best meet customer expectations".
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