Honda e2W Plan

Honda has announced its entry into the Indian e2W market with launch of two models, ACTIVA e and QC1. Honda has positioned 2024 as the inaugural year for global expansion of its electric motorcycles, marking the beginning of a full-scale entry into the electric motorcycle market. The ACTIVA e: and QC1 are part of Honda’s “30 electric models to be launched globally by 2030” target, toward which Honda is making steady progress.

Honda will strategically pursue electric vehicle introduction in 3 phases, market entry phase till 2026, Business expansion phase from 2026 to 2030 and full-scale business growth phase from 2030 onwards. Honda’s electrification strategy is aligned to Honda’s global ‘Triple Action to ZERO’ initiative aimed at achieving carbon neutrality by 2050, focussed on three pillars: carbon neutrality, clean energy, and resource circulation.

Honda has a long history of e2W development which started with CUV ES (Clean Urban Vehicle) in 1994 (only in Japan) followed by EV Neo (2009) and PCX electric in 2018. All e2W launched since 2018 starting with PCX electric are powered by the Honda Mobile Power Pack (MPP) swappable battery.

The Activa e is powered by two Honda Mobile Power Pack e swappable batteries the QC1 is equipped with fixed Honda Mobile Power Pack e battery. The Activa e and CUV e (Indonesia) have been developed with global markets in mind including India, Japan, ASEAN and Europe.

In the near term, Honda will introduce battery-swapping models with “Honda Mobile Power Pack e: (MPP)” and will broaden its product line with fixed battery models focussed on key global markets.

Industry Collaboration:

Honda has taken lead in creating two industry consortia, one focussed on Japan and second for Europe.

Japan:

Honda established Swappable Battery Motorcycle Consortium (SBMC) together with Yamaha, Suzuki, and Kawasaki in 2019 with the goal of increasing e2W adoption in Japan by addressing challenges like range, charging time, performance and cost.

SBMC members utilise Honda Mobile Power Pack e:, swappable batteries that meets the specifications agreed upon by the consortium.

On April 1, 2022, Honda along with Eneos (largest Japanese Petroleum company), Kawasaki Motors, Suzuki Motor Corporation and Yamaha Motor established Gachaco, Inc. to provide sharing service of standardized swappable batteries for electric motorcycles and develop associated infrastructure.

Recently, Honda and Yamaha have finalised an agreement that Yamaha’s future electric motorcycles will also be supplied by Honda.

Europe:

Honda established SBMC for the European market, with KTM, Piaggio and Yamaha with the aim of defining standardized technical specifications of  swappable battery system.

The European SBMC now has 32 members in addition to four founding members.

Honda Electrification Strategy:

By leveraging its unique characteristics of being portable and swappable, Honda has developed MPP with an eye towards future expansion thereby not limiting itself to Honda products but for a wide range of applications including electric mobility products of other OEMs, household stationary batteries and a portable power source for outdoor uses.

 “Honda eMaaS,” concept combines electrified mobility products will work hand-in-hand with its energy services for infrastructure-linked power operations through.

1. EaaS (Energy as a Service) that connects energy and services and

2. MaaS (Mobility as a Service) that realizes the freedom of mobility for people

Honda India Battery Swapping Network:

Honda established Honda Power Pack India (HEID) to support Battery swapping with current operations in Bangalore and New Delhi and plan to expand to Mumbai.

HEID has about 85 operational battery-swapping stations in Bengaluru and plans to expand that number to 500 stations across Bengaluru, Delhi and Mumbai by March 2026.

Since Honda Activa e is powered by swappable batteries it will only be sold in Bangalore, Delhi and Mumbai while QC1 will be available across India.

Manufacturing Location:

Both vehicles will be manufactured at HMSI’s Narsapura plant near Bengaluru in Karnataka.

Sales Network:

The electric scooters will be sold through Honda’s Red Wing dealerships as a strategy to support Dealers for its Big Bike business. Additionally, Honda is also working on a experience centre and will create a Honda Concept store in Q1 2025.

Alternative Technologies:

Honda is also invested in alternative technologies and has recently launched India's first 300cc flex-fuel motorcycle (CB300F) available at Big Wing dealerships.

Conclusion:

The Honda Mobile Power pack plays an important role in Honda’s overall electrification strategy which extends beyond e2W and will create complete mobility and energy ecosystem.  

While the QC 1 with a pan India reach is likely to be the volume model for Honda, its Swapping ecosystem is going to play an important role in sales of the Activa e. Also, with Active e sales planned only in Bangalore, New Delhi and Mumbai how well the Activa e will complement the market leading Activa petrol version reputation and challenge its major competitors remains to be seen.