Honda Motorcycle and Scooter India (HMSI) has set up a dedicated unit for the production of electric two-wheelers (2Ws) in Karnataka. The unit is expected to roll out 10 lakh units per year by 2030, with an investment of INR 4,600 crore.
According to a statement by HMSI, the new unit is part of the company’s plans to strengthen its position in the electric vehicle (EV) market. The unit will produce a range of electric 2Ws, including scooters and motorcycles, which will be sold in the Indian market and exported to other countries.
The new unit will be located in Vithalapur, near Ahmedabad, and will have an initial capacity of 20,000 units per month. The production capacity will be gradually increased to 1 lakh units per month by 2023 and 10 lakh units per year by 2030.
The investment in the new unit will be made in a phased manner, with INR 2,500 crore expected to be invested by 2023 and the remaining amount to be invested by 2030. The unit will also create employment opportunities for around 10,000 people, including direct and indirect jobs.
HMSI’s move to set up a dedicated unit for electric 2Ws comes as the Indian government is promoting the adoption of EVs to reduce air pollution and carbon emissions. The government has set a target to achieve 30% electrification of the country’s vehicle fleet by 2030.
HMSI is one of the leading players in the Indian 2W market and has been investing heavily in the development of EVs. The company has already launched an electric scooter, the Activa Electric, in the Indian market and plans to introduce more electric 2Ws in the future.
The establishment of a dedicated unit for electric 2Ws is expected to help HMSI to strengthen its position in the Indian EV market and contribute to the country’s efforts to promote sustainable mobility.
