The country's second-largest two-wheeler company, Honda Motorcycle and Scooter India (HMSI), wants to bring more of its global premium motorcycle models to India and localise them at its plants if volume growth in the segment sustains, as TVS, Hero and Bajaj accelerate product launches.
In an interview with Mint, Tsutsumu Otani, president, Honda Motorcycle and Scooter India Pvt. Ltd, said the company has noted very strong volume growth in the premium segment, particularly among young consumers, and plans to expand its presence.
“From a customer's perspective, the motorcycle market can broadly be divided into two categories. The first is motorcycles used for commuting, whether for work or everyday transportation,” Otani said.
“The second is motorcycles purchased for Fun–enjoyment, and as a hobby. As economies grow and GDP increases, the latter category naturally expands. Rising incomes give customers greater purchasing power, and they also have much wider access to global information than they did 10 or 20 years ago,” he added.
This has resulted in premium motorcycles gaining traction among young consumers, giving impetus to the segment. While entry-level sales were at 3% to 9.5 million units in fiscal 2026, the premium category, defined as above 125cc engine capacity, surged 15% to 3.5 million units, according to Society of Indian Automobile Manufacturers (Siam) data.
The trend has indicated the direction of the market, which Honda wants to capitalise on with a mix of new global premium motorcycles and the localisation of more models.
“We need sufficient volumes before we can localize production. Step by step, as the fun (premium) motorcycle category grows, we will shift production from other factories to our India factories,” Otani noted.
Honda’s premium model lineup above 125cc engine capacity includes Honda Unicorn, Honda CB350, Honda SP160, and Honda NX200, among others.
Rivals sprint ahead in the premium race
The commentary from the Gurugram-based two-wheeler player comes as rivals invest in expanding exclusive retail outlets for premium products and introducing newer products in the 125cc to 350cc segment.
From Hero’s Premia network to TVS’s global relaunch of the well-known Norton brand, the industry is undergoing its most significant shift in a decade, seeking to replicate Royal Enfield’s premium playbook.
In the financial year 2026, Honda saw 11% growth in scooter sales to 3.16 million units and 4% growth in motorcycle sales to 2.58 million units.
Along with a focus on the premium category, the scooter market leader also wants to increase its presence in the electric vehicle (EV) space, where the Japanese two-wheeler maker has lost ground to Indian rivals TVS and Bajaj via the introduction of a new model this year and more launches in the upcoming financial years.
Electric two-wheeler sales grew by 22% in FY26, with most of the market cornered by legacy players TVS Motor Co., Bajaj Auto, and Hero Motocorp, as well as new-age players Ather Energy and Ola Electric. Honda has not yet made its presence felt in the segment, and it wants to change that.
“As part of our multi-pathway approach towards mobility, an additional EV model is planned for introduction this year. Beyond this, our EV portfolio will continue to evolve in line with customer requirements, market development, and broader ecosystem readiness,” Otani said.
Playing catch-up on electric vehicles
However, the Japanese executive cautions against expecting growth in the EV sector until nationwide infrastructure is in place, prompting cautious steps in the segment.
“The change from ICE to Electric is not simple. It requires infrastructure readiness, such as energy resources and the energy supply chain. From the customer's point of view, they care about whether ICE or EV is more convenient and offers better benefits. India is a huge country, and the situation is different from state to state and town to town. So it's difficult to talk about India as one market,” Otani said.
The premium models push, and electric models come as Honda prepares to pump more than ₹2,000 crore into the Indian market to expand its overall capacities to add more than 1.2 million units capacity annually. Currently, the company’s total capacity is around 6.2 million units.