Honda recently held a press briefing about its electric motorcycle business initiatives . The briefing was presented by Katsushi Inoue , senior managing executive officer and chief officer in charge of Electrification Business Development Operations , and Daiki Mihara , head of the Motorcycle and Power Products Electrification Business Development Unit .

INCREASING 2023 GLOBAL ANNUAL SALES TARGET OF ELECTRIC MOTORCYCLES TO 4 MILLION UNITS

Honda revised its 2030 electric motorcycle annual sales target to 4 million units , up 500,000 units from what it announced last September .

This year , Honda began sales of three new EB ( Electric Bicycle ) models , including the Honda Cub E in China and the EM1e : electric scooter in Japan and Europe . ( In China , motorcycles with a maximum speed of 25 km / h or less are categorized as EB . This category does not include electric assist bicycles ).

Honda will introduce a new model globally in 2024 , based on the SCe : Concept , recently exhibited at the Japan Mobility Show 2023 , which will be followed by the global introductions of “ FUN-oriented ” models and plug-in electric models in 2025 . Honda will introduce electric models in various categories such as super sports , naked , off-road , kids ’ bikes and ATVs , accelerating its initiatives to build a full lineup of electric models by introducing a total of more than 30 electric models by 2030 .

ADVANCING MOTORCYCLE MANUFACTURING WITH ELECTRIFICATION

Honda already has strengths through the development of ICE motorcycles . In addition to leveraging existing strengths in the development and production of electric models , Honda will apply connectivity features , which will be significantly advanced through electrification , to offer electric motorcycles that will offer enhanced rider comfort and continue advancing even after the purchase .

In the form of a modular platform , the battery , power unit and chassis of electric

motorcycles are modularized respectively , and by combining such modules , a wide range of variations can be developed . This will enable Honda to quickly and efficiently introduce several models that accommodate the diverse needs of customers around the world . This modularization will also generate a cost advantage .

Connectivity is one of the features that will be significantly advanced with electric motorcycles . Advanced connectivity will enable post-purchase software updates , including the addition of new functions , through OTA ( over-the-air ) or other formats .

Honda will further advance the Honda RoadSync connectivity service , offered since 2020 , and equip new models to be launched in 2024 with an IVI ( in-vehicle infotainment ) system that includes a suggestion-based navigation function , which will utilize collected information and provide the customers with information such as the location of charging stations .

For new models to be launched in 2026 , Honda will install a telematics control unit ( TCU ) and further advance its connectivity service . In the future , data obtained and accumulated from both ICE and electric models will be utilized to understand the needs of customers based on how motorcycle models are used .

As for batteries , in addition to the ternary lithium-ion batteries used in electric models currently in the market , Honda has been developing lithium ferro-phosphate ( LFP ) batteries and plans to adopt them in 2025 . Having a variety of batteries , each with different strengths in terms of output range and cost , will enable Honda to accommodate a wider range of use applications and expand the range of product variations . In the mid- to long-term , Honda will explore the adoption of batteries with high energy density , with an eye toward the utilization of all-solid-state batteries currently under development .

NEW CUSTOMER TOUCHPOINTS IN ELECTRIC MOTORCYCLE BUSINESS

In the electric motorcycle business , Honda will improve customer convenience by offering online sales that allow customers to purchase motorcycles without going to a dealer

in person , while also providing peace of mind to customers through services provided by Honda ’ s existing global sales network of more than 30,000 dealership locations .

As a new initiative , Honda will establish “ Experience Centers ” in major cities in India , ASEAN , and other countries , where customers can experience the value Honda wants to offer . By combining the strengths of existing dealerships and enhanced online services , Honda will offer more integrated online and offline customer touchpoints that provide customers with more convenience and peace of mind .

REDUCING THE COST OF FINISHED ELECTRIC MOTORCYCLES BY 50 %

By 2030 , Honda will strive to reduce the cost of finished electric motorcycles by 50 percent compared to the cost of currently available electric models powered by swappable batteries . Honda will adopt plug-in models , optimize battery cells , increase the efficiency of procurement and production through the adoption of common modules , and increase production efficiency through various measures such as producing at factories dedicated to the production of electric models .

For the production of electric models , Honda will initially utilize its existing infrastructure for ICE models . But to build a solid production system and further increase its competitiveness toward the achievement of the 2030 sales target , Honda will begin the operation of dedicated electric motorcycle production plants , globally , around 2027 .

Striving to realize a highly efficient production system at these dedicated plants , the length of assembly lines will be reduced by approximately 40 percent compared to conventional lines through the adoption of new technologies such as modularization technology . Each dedicated plant will represent an investment of 50 billion yen ($ 338M ), with an

Source : Honda Motor Co .

annual production capacity of 1 million units .

As for procurement , the current method of purchasing functional components will be revised so that procurement can be done by component parts in the future . Honda will strive to reduce the cost of materials and logistics to increase the competitiveness of its procurement system and capability .

INVESTING APPROXIMATELY 500 BILLION YEN OVER 10 YEARS TO MAXIMIZE SALES OF ELECTRIC MODELS

For the electrification of its motorcycles , Honda is investing 100 billion yen over the five years from 2021 to 2025 and will invest an additional 400 billion yen over the five years from 2026 to 2030 , to total approximately 500 billion yen over 10 years before the end of the decade .

In 2031 and beyond , Honda will further enhance its competitiveness by investing in the establishment of a production system and capability on a global basis and further advancing software technologies to maximize the sales of electric motorcycles .

AI MING FOR OVER 10 % OPERAT- ING PROFIT MARGIN FOR ELECTRIC MOTORCYCLE BUSINESS IN 2031 AND BEYOND

Honda will strive to achieve targets for a 2030 operating profit margin of more than 5 percent for the electric motorcycle business and more than 10 percent for the entire motorcycle business . For 2031 and beyond , Honda will aim to achieve an operating profit margin of more than 10 percent for the electric motorcycle business and further increase the total profit amount as well .

Honda will build a highly profitable structure for its electric motorcycle business , as it has with its current ICE motorcycle business , and increase profits for the motorcycle business as a whole .