Honda Motorcycle & Scooter India (HMSI) plans to expand domestic manufacturing, introduce additional models in 2027 and assess the long-term prospects of India's used electric two-wheeler market.

The company is evaluating further localisation of its international motorcycle portfolio and studying battery health, resale values and ownership patterns to inform its electric vehicle (EV) strategy.

In an interaction with media outlets, HMSI President and CEO Tsutsumu Otani confirmed that the engine powering the new Honda CB500 would be manufactured in India. However, he did not disclose the production location, schedule or extent of localisation.

The CB500 is powered by a 501cc air- and oil-cooled single-cylinder engine producing 28 PS and 43.3 Nm of torque. Prices were announced in September 2026, starting at Rs. 275,000 (US$ 2,895). The motorcycle is available in three variants, with deliveries of the initial variant scheduled to begin following the announcement.

Domestic production of the 501cc engine would extend HMSI's engine manufacturing operations beyond its existing CB350 range, which uses engines with displacements of approximately 349cc. Honda is also evaluating the India-made CB500 for overseas markets, although a final export programme has not been announced.

Further localisation and 2027 launches

Honda is considering additional motorcycles from its global portfolio for domestic production. Customer demand and the capabilities of India's supply chain will determine which models are suitable for localisation. Asked about models such as the NX500, Otani said, "Customer demand is the first priority. The second is the strength of the supply chain in India." No additional models or localisation timelines were confirmed.

The CB500 was among the products showcased in July 2026, comprising new models and existing models with refreshed colours across the motorcycle and scooter categories. Honda also outlined plans to expand its local engineering, sourcing and manufacturing capabilities.

Otani confirmed that further models would be introduced in 2027 but declined to disclose the number of launches, stating that the dealer network would be informed first. The company has not identified the segments or powertrain technologies of the upcoming products.

Discussing future growth, Otani said that both the existing portfolio and larger-displacement motorcycles would contribute. He noted that customer preferences vary by generation, region and income level, adding that Honda's global portfolio could provide options for adapting products to Indian requirements.

"Make in India is very important," he said, explaining that market demand and the availability of local suppliers would guide decisions on adapting international products for domestic production.

HMSI has separately announced plans to increase its annual manufacturing capacity by 2028. The expansion includes additional production lines at existing facilities to support domestic demand and exports.

Studying India's used electric two-wheeler market

HMSI is examining India's second-hand electric two-wheeler market, focusing on resale values, battery health and long-term ownership patterns. The company expects to gain a clearer understanding of the market over the next three years as the first generation of electric two-wheelers enters the used-vehicle market.

"We are analysing how to address residual value and how to maintain vehicle value over time. This is a key issue, not just launching new models," Otani said.

He noted that the first wave of EVs entered the market around 2021, allowing Honda to observe how customers respond to used vehicles after their initial ownership periods. The company is studying depreciation, battery replacement requirements and factors affecting the value of electric two-wheelers as they age.

While motorcycle owners have traditionally expected to use their vehicles for more than ten years, EV ownership involves additional considerations, including battery replacement costs and residual values. Honda is assessing how the development of a second-hand market could affect EV adoption by providing information on ownership costs and resale prospects.

"We would like to study how the second-hand EV market develops because it could support continued EV growth," Otani said.

Battery-condition assessment is another area of research. Referring to battery-health indicators used in smartphones, Otani said EVs would require reliable methods of evaluating battery condition. Honda is also studying customer acceptance of used electric vehicles and changes in ownership behaviour.

Electric portfolio and battery swapping

HMSI's electric two-wheeler portfolio includes the Activa e:, QC1 and QC3. The QC3 was launched in September 2026 at Rs. 135,000 (ex-showroom), initially across five cities. Otani confirmed that Honda was considering additional electric products but did not disclose their number or launch timelines. Customer requirements would guide decisions on product development and solutions.

The company is also evaluating battery swapping for business-to-business (B2B) and private customers. Otani said battery swapping could benefit professional users who depend on their vehicles for work because it reduces charging-related waiting times and can minimise downtime.

For private buyers, Honda is examining battery subscription models under which the battery remains the service provider's asset rather than the customer's. This arrangement could reduce concerns about battery ownership, replacement costs and residual values.

Otani said the use of Honda's electric scooters was increasing gradually, including among delivery riders and other professional users. Battery swapping could be relevant to these customers because of their usage patterns.

Regional differences and market data

Otani expects EV adoption to vary across India according to local requirements, infrastructure and energy sources. Adoption could increase in large cities and urban centres, while biofuels and other energy sources might be more widely used in smaller cities and rural areas. Government objectives, charging and battery-swapping infrastructure, and regional requirements would influence the future energy mix.

According to VAHAN-based data compiled by Flash Finance, electric two-wheeler registrations increased by 58.8% year on year between January and July 2026. In July, TVS Motor recorded the highest number of registrations, followed by Bajaj Auto, Ather Energy, Hero MotoCorp and Ola Electric. HMSI accounted for approximately 0.5% of the segment's registrations during the month.

Honda's plans include domestic engine manufacturing, increased production capacity, new model launches and electric mobility. Its research into used-EV values, battery condition and ownership models will inform its strategy as India's electric two-wheeler market develops.