Honda's Electrifying Future: A Deep Dive into the 2023 Briefing on Electric Motorcycles
In a groundbreaking press briefing on November 29, 2023, Honda Motor Co., Ltd. unveiled its ambitious roadmap for the electrification of motorcycles, with a strong focus on enhancing the business structure and achieving substantial sales targets. This comprehensive strategy, outlined by Katsushi Inoue and Daiki Mihara, signals Honda's commitment to becoming a dominant force in the electric motorcycle market. Let's delve into the key highlights of this electrifying journey and its implications for the future.
Global Sales Targets and Model Expansion
Honda is charging into the future with an increased global annual sales target of electric motorcycles for 2030, now at a staggering 4 million units. This aggressive target, up by 500,000 units from the previous projection, emphasizes Honda's dedication to leading the electric mobility revolution.
Honda plans to introduce 30 electric models globally by 2030 to achieve this. This includes the recent launch of three Electric Bicycle (EB) models in China and the EM1e electric scooter in Japan and Europe. The company aims to build a comprehensive lineup covering super sports, naked, off-road, kids' bikes, and ATVs. A new global model based on the SC e: Concept, exhibited at the JAPAN MOBILITY SHOW 2023, is set to debut in 2024, followed by "FUN-oriented" models and plug-in electric models in 2025.
Advancements in Motorcycle Manufacturing with Electrification
Leveraging its accumulated strengths in Internal Combustion Engine (ICE) motorcycles, Honda is committed to advancing motorcycle manufacturing through electrification. The modularization of electric motorcycle components, including the battery, power unit, and chassis, enables the rapid development of diverse models. This approach caters to the varied needs of global customers and generates a significant cost advantage.
Connectivity takes centre stage in Honda's strategy, with advanced features allowing for post-purchase software updates through over-the-air (OTA) capabilities. The Honda RoadSync connectivity service, initiated in 2020, will be further enhanced, providing customers with an In-Vehicle Infotainment (IVI) system in 2024, complete with a suggestion-based navigation function. Future models in 2026 will feature a telematics control unit (TCU), allowing for more advanced connectivity services and data accumulation from both ICE and electric models.
New Customer Touchpoints and Online Sales
In response to the evolving landscape of customer preferences, Honda is adopting new customer touchpoints in its electric motorcycle business. Online sales, allowing customers to purchase without visiting physical dealerships, will enhance convenience. Additionally, Honda will establish "Experience Centers" in major cities across India, ASEAN, and other countries. These centres aim to provide customers with a firsthand experience of the value offered by Honda's electric motorcycles.
Aggressive Cost Reduction Strategies
Honda's commitment to affordability is evident in its goal to reduce the cost of finished electric motorcycles by a remarkable 50% by 2030. This reduction will be achieved by adopting plug-in models, optimizing battery cells, and increasing production efficiency. Dedicated electric motorcycle production plants will streamline production globally from around 2027. Each plant represents a 50 billion yen investment and can have an annual production capacity of 1 million units.
Strategic Investments for Global Dominance
Honda is making a solid push to dominate the global electric motorcycle market. With a significant investment of approximately 500 billion yen over ten years, Honda aims to establish a robust global production system and advance software technologies. This investment will secure Honda's position in the market and contribute to realizing its 2030 sales target of 4 million units.
Investments for Global Dominance and Profitability
As Honda accelerates its electrification initiatives, it backs its vision with substantial investments. With a total investment of approximately 500 billion yen over ten years, Honda aims to establish a robust global production system, advance software technologies, and maximize the sales of electric motorcycles. The goal is not only to achieve an operating profit margin of more than 10% for the electric motorcycle business in 2031 and beyond but also to increase profits for the motorcycle business as a whole.
The Road Ahead: Honda's Power of Dreams in Motion
In line with the spirit of the Honda Global Brand Slogan, "The Power of Dreams – How we move you," the company envisions becoming the driving force that propels people and society forward. With a focus on innovation, sustainability, and customer satisfaction, Honda's electric motorcycles are poised to shape the future of mobility.
As enthusiasts and the broader electric vehicle community eagerly await the realization of Honda's ambitious plans, Stay tuned for updates and be part of the journey as Honda powers into the future, bringing dreams to life on two wheels.
Image Source: Honda