Three-and-a-half years after Tsutsumu Otani took charge of Honda Motorcycle & Scooter India (HMSI), annual dispatches have climbed nearly 46 per cent, from 43.51 lakh units in FY23 to approximately 63.7 lakh in FY26. Yet the Japanese two-wheeler maker faces a paradox: a stronghold in Activa scooters and Shine and SP125 commuter motorcycles, but gaps in the 150–200cc performance segment and electric scooters, where Bajaj, TVS, Yamaha and Ather have established strong positions. To defend its mass-market strength while expanding its premium and electric portfolios, Honda is investing ₹2,420 crore to add 13.2 lakh units of annual manufacturing capacity in Gujarat and Rajasthan, taking total capacity to 80 lakh vehicles by 2028.
Otani, President and Chief Executive Officer of HMSI, said the company was balancing expansion with demand for conventional and electric two-wheelers. “ICE demand is also high, so we need to balance production based on customer demand,” he said, adding that existing capacity was fully utilised.
Regarding festive demand, Otani described the market as “very strong” .“The industry has grown in the first half, and we expect the motorcycle business to continue growing,” he said.
HMSI’s dispatches rose 15 per cent to 41.74 lakh units during April–October 2026, with domestic sales increasing 13 per cent to 37.08 lakh units and exports growing 28 per cent to 4.65 lakh units.
Vahan data show Honda leading Hero MotoCorp in monthly registrations for four consecutive months through October, narrowing Hero’s calendar-year lead to 93,803 units from 2.32 lakh at June-end.
But Otani acknowledged that the recovery was uneven. “In some areas, particularly rural areas, the situation is not so good due to the harvest, monsoon and other factors. But, generally, the market is growing,” he said.
Honda led Hero by 1.02 lakh non-electric registrations during January–October, but Hero’s 2.03 lakh EV registrations, against Honda’s 6,471, preserved its overall retail lead.
The contrast was also evident in October, when Honda’s overall registrations rose 35.2 per cent month-on-month, while its EV registrations increased just 3.4 per cent to 1,145 units.
“The EV market is growing, but the situation is different from area to area,” Otani said, citing stronger adoption in Bengaluru and inadequate charging infrastructure in rural markets.
Honda is pursuing swappable and fixed-battery technologies through Activa e:, QC1 and QC3, with the latter’s dispatches scheduled for December.
“Battery swapping is basically focused on the B2B business,” he said, referring to delivery services and bike taxis seeking to minimise charging downtime.
On premium motorcycles, an HMSI representative said buyers were increasingly choosing practical 125–160cc models or upgrading directly to 350cc-plus motorcycles, where Royal Enfield has a strong presence.
“Honda will therefore introduce new models in the premium segment, making use of Honda’s global resources,” Otani said.
Exports grew 28 per cent during April–October, with October shipments rising 35 per cent to approximately 69,000 units .“Exports depend on demand in the importing countries,” Otani said, indicating expectations of around 30 per cent growth.
Honda is also pursuing conventional, electric and flex-fuel technologies, with production guided by customer demand .“If customers want to buy more EVs, we will produce more EVs. If they want more flex-fuel vehicles, we will produce those,” he said.
Otani’s longer-term priority is retaining Honda’s customer base of more than 40 million vehicles in operation .“If a customer buys a Honda, we want them to choose Honda again when it is time to repurchase their vehicle.”
Published on November 1, 2026
