In a bid to boost its presence in the global two-wheeler market, Honda Motor Co. announced plans to make India its key base for motorcycle and scooter production and sales.
The Japanese company expects to produce 8 million two-wheelers annually in India by 2028, up from 6.25 million as of now. It also aims to create more than 3,800 new jobs and increase its exports to Europe, Africa, and South America.
The 8 Million Unit Vision
Honda’s India roadmap involves significantly ramping up its production capabilities at four plants in Manesar (Haryana), Tapukara (Rajasthan), Narasapura (Karnataka), and Vithalapur (Gujarat). As of this year, the four units have a combined production capacity of 6.25 million units per year. However, Honda has ambitious plans to expand its India operations and increase its output to 8 million motorcycles and scooters per year by 2028.
As per reports, the Tapukara plant in Rajasthan will be expanded to near double its current production capacity of 1.3 million units. It will also introduce a new production line that will start operating in 2028 and add 670,000 units to the company’s yearly output. The new facility will have an ample supply of two-wheeler variants to meet the demands of diverse global markets. It will also be highly adaptable to varying product requirements from different regions.
Exports: From 65 Countries to Global Dominance
Honda currently exports its motorcycles and scooters to 65 countries, including Japan and Europe, as well as several countries in Africa and South America. In FY26, HMSI exported 0.62 million units as compared to 0.36 million in FY24. Looking ahead, the company expects to increase its exports from India to key markets such as Europe, Central and South America, and Africa.
The European Union is a priority market for Honda, and the company expects to start exporting motorcycles and scooters from India to the EU in 2026. Specifically, Honda will export mid-size displacement motorcycles (300cc-500cc) from India to meet the rising demand in the region. The company currently exports motorcycles and scooters to Brazil, Argentina, and Colombia and will ramp up its exports to these countries and several others across the world and the EU.
In addition, Honda will increase its exports of motorcycles and scooters to several African countries. Here, the company is targeting a significant rise in demand for rugged, affordable commuter motorcycles. As such, India is expected to become a critical production base for this segment as well due to its lower costs compared to other regions.
To support its expansion in the global two-wheeler market, Honda is focusing on improving its development, procurement, and production capabilities in India. Among other measures, the company will boost local to shorten the supply chain and lower costs. This will enable the company to make its products more cost-competitive while still maintaining quality.
The Electric Push: A Dedicated EV Plant by 2028
While Honda’s India roadmap primarily involves expanding its ICE vehicle production, the company also has plans to enter the electric two-wheeler market. Honda has committed to achieving carbon neutrality by 2050 and targets to sell electric vehicles (EVs) comprising 30% of its global two-wheeler sales by 2030.
The company has plans to localize production of electric motorcycles and scooters and has earmarked a dedicated facility for this purpose. It will establish an exclusive plant for developing and manufacturing electric two-wheelers in India by 2028. The company will use a high-efficiency production system in the new plant to reduce costs significantly.
Job Creation and Economic Impact
As mentioned above, Honda will create more than 3,800 new jobs in India by 2028. It will also invest significantly in expanding and upgrading its manufacturing facilities in the country. This is expected to have a positive knock-on effect on the local supply chain and ancillary industries, creating additional jobs and boosting the overall economy. In addition, the company will also create jobs in research, development, and related support functions.
Strategic Focus: India as a Priority Market
Honda’s global CEO, Toshihiro Mibe, has identified India, North America, and Japan as priority markets for the company’s future growth. In line with this strategy, Honda will launch India-specific car models from 2028. It will also localize its vehicles’ features and specifications based on customer preferences and optimize its two-wheeler operations to expand its export base.
Honda’s plans to scale up its India operations and increase its two-wheeler production capacity to 8 million units per year by 2028 is an important vote of confidence in the country’s manufacturing capabilities. It will also have a positive impact on the local economy by creating thousands of jobs and boosting the supply chain and ancillary industries. In addition, Honda’s decision to enter the electric two-wheeler market in India could disrupt the global EV market, as the company is targeting to localize its electric vehicle production in the country.
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