EBM News English

Honda Puts Future Investments On Hold


India’s largest scooter manufacturer, was withdrawing from any further investment decisions until they have some clarity on the government’s proposals for the electrification of sub-150cc two-wheelers in the country. This decision is a result of report released by the Niti Ayog, proposing that all sub-1500 two-wheelers in India will have to be converted to electric vehicles by 2023.
Two -wheeler manufacturers in India have mentioned before that this swift move has led to them to divert large amounts of engineering resources into BS-VI engine development. Stricter emission rules means that most, if not all two-wheelers will use fuel-injection systems. This along with inflation in production of other safety features, increases prices by 10-15 per cent. Mr Kato said that a sales slowdown because of this was anticipated. He also mentioned that was not anticipated was the further decline in sales numbers after the elections. Sales for a number of two-wheeler, and passenger car manufacturers have reduced by 15 to 25 per cent.

There are two major concerns over the electrification of two-wheelers at such pace. One is the travel range that the electric scooters provide. Two wheeler owners in India tend to ride longer distances within a city, and the current builds only allow for a best of 70-75 kilometers per charge. And two, they feel while India produces enough of electricity, the back-end grids need to be upgraded across the country in order to meet charging load requirements of millions of two wheeler users.