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Business News/ Auto News / Honda to invest $3.4 billion on electric two-wheelers by 2030
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Honda to invest $3.4 billion on electric two-wheelers by 2030

Honda aims to reduce the cost of electric motorcycles by 50% and increase its global annual sales target for 2030 to four million units.

MIAMI, FLORIDA - NOVEMBER 27: A 2024 Honda HR-V sits on a dealer's lot on November 27, 2023 in Miami, Florida. Honda announced it is recalling more than 300,000 vehicles over faulty seat belts including the 2023-2024 Accords and HR-Vs. Joe Raedle/Getty Images/AFP (Photo by JOE RAEDLE / GETTY IMAGES NORTH AMERICA / Getty Images via AFP) (Getty Images via AFP)Premium
MIAMI, FLORIDA - NOVEMBER 27: A 2024 Honda HR-V sits on a dealer's lot on November 27, 2023 in Miami, Florida. Honda announced it is recalling more than 300,000 vehicles over faulty seat belts including the 2023-2024 Accords and HR-Vs. Joe Raedle/Getty Images/AFP (Photo by JOE RAEDLE / GETTY IMAGES NORTH AMERICA / Getty Images via AFP) (Getty Images via AFP)

Japanese auto giant Honda said it plans to invest 500 billion yen ($3.4 billion) in production of electric motorcycles and mopeds this decade.

The firm, the world's biggest makers of two-wheelers, also said it plans to launch 30 new electric models by 2030 and to reduce the current cost of electric motorcycles by 50 percent.

"For the electrification of its motorcycles, Honda is investing 100 billion yen over the five-year period from 2021 to 2025, and will invest an additional 400 billion yen over the five-year period from 2026 to 2030," Honda said in a statement on Wednesday.

It also hiked its global annual sales target for 2030 to four million units, up from its previous goal of 3.5 million announced last year.

It added that it will initially use its existing infrastructure for internal combustion engine models but will begin the operation of dedicated electric motorcycle production plants from around 2027.

The firm will also "improve customer convenience by offering online sales that allow customers to purchase motorcycles without going to a dealer in person".

The global electric motorcycle market was worth $30 billion in 2022 and is anticipated to grow by almost 19 percent per year between 2023 and 2030, according to Grand View Research, in part on the back of public concerns about fuel costs and also climate change.

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Published: 30 Nov 2023, 09:44 AM IST
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