Honda Motorcycle & Scooter India is stepping up its growth strategy as India’s two-wheeler market continues to expand, with the company focusing on domestic demand, premium motorcycles and scooters, exports, electric mobility and alternative fuel technologies.
The company considers India one of its most important global markets and is expanding its product portfolio while strengthening manufacturing capacity and localisation to respond to changing customer preferences.
Honda Confident About Long-Term Market Growth
Honda remains confident about the long-term growth potential of India’s two-wheeler market.
According to Honda Motorcycle & Scooter India President and CEO Tsutsumu Otani, improving rural infrastructure, increasing personal mobility needs, rising participation of women in the workforce and growing demand for premium products are expected to support industry growth.
While the market may grow at a more moderate pace, the company remains focused on sustainable growth during FY27.
Q1 FY27 Sales Rise 17%
Honda Motorcycle & Scooter India sold 16,11,662 two-wheelers during April-June 2026, the first quarter of FY27.
The figure represents a 17% increase from 13,75,152 units sold during the same period a year earlier. Domestic sales increased 15% to 14,13,539 units, while exports rose 36% to 1,98,123 units.
June Sales Also Record Strong Growth
HMSI recorded total sales of 5,28,281 units in June 2026, up 23% from 4,29,147 units in June 2025.
Domestic sales increased 21% to 4,68,956 units, while exports surged 47% to 59,325 units. The strong performance indicates continued demand across both domestic and international markets.
Premium Segment Gets Greater Focus
Honda is increasing its focus on the premium and mid-size motorcycle segments as it expands its product portfolio.
The company is not relying only on new launches but is also looking to increase localisation and use its global resources to develop products suited to Indian customers.
The strategy is aimed at strengthening Honda’s presence beyond the mass commuter segment and capturing growing demand for premium two-wheelers.
Electric Mobility Remains on the Agenda
Honda is also working on its electric two-wheeler strategy as electric vehicles gain a larger share of India’s two-wheeler market.
The company believes a strong charging infrastructure is essential for the wider adoption of electric two-wheelers. As charging networks improve, the company expects electric mobility to become more practical for a larger number of consumers.
Alternative Fuel Technology
Alongside electric mobility, Honda is continuing to explore alternative fuel technologies, including flex-fuel vehicles.
The company is pursuing a multi-pathway approach that combines advanced internal-combustion technologies, electric mobility and flex-fuel solutions to address different customer requirements and infrastructure conditions across India.
Manufacturing Capacity to Expand
Honda is also expanding its manufacturing capacity to meet future demand.
The company plans to invest around ₹1,500 crore in a third production line at its Tapukara plant in Rajasthan. The new line is expected to become operational in 2028 with an annual capacity of 6.7 lakh units.
With this expansion and other planned investments, Honda’s overall annual production capacity in India is expected to rise to around 80 lakh units by FY2028.
Focus on Sustainable Manufacturing
Honda is combining business expansion with environmental initiatives across its manufacturing operations.
The company is increasing its use of renewable energy, including solar and wind power, while also implementing water conservation, rainwater harvesting and wastewater recycling measures.
These initiatives are aligned with Honda’s global goal of achieving carbon neutrality by 2050.
Exports Provide Another Growth Avenue
Exports are emerging as another important growth driver for HMSI.
The 36% increase in exports during Q1 FY27 indicates stronger international demand for Honda’s products manufactured in India. The company is also looking to expand its global footprint by leveraging its Indian production and supply ecosystem.
Conclusion
Honda Motorcycle & Scooter India is pursuing a long-term sustainable growth strategy as India’s two-wheeler market continues to expand. The company is simultaneously focusing on domestic demand, premium products, exports, electric mobility, alternative fuel technologies and manufacturing expansion.
The 17% sales growth recorded during Q1 FY27 and the 36% rise in exports provide a strong start to the financial year. With new products, increased production capacity, greater localisation and sustainable manufacturing initiatives, Honda is looking to strengthen its position in India while building the country into an important base for its global operations.
