Shifting focus to premium segment, utilising our global resources: Tsutsumu Otani, CEO, Honda Motorcycle & Scooter India

In the long term, we remain confident about the growth potential of the Indian two-wheeler market, tells Otani

Bengaluru: From left- Yogesh Mathur, Director, Sales and Marketing, Honda Motorcycle & Scooter India, Tsutsumu Otani, CEO, President Center-Center-Delhi

Not two or four, but a total of 10 models were unveiled by Honda Motorcycle & Scooter India (HMSI) earlier this week, as the Japanese two-wheeler manufacturer eyes a bigger play in the fast-growing premium and mid-size segment. To expand its product portfolio, HMSI would not rely only on product launches but also on increasing localisation, Tsutsumu Otani, President & CEO, Honda Motorcycle & Scooter India, told TNIE in an interaction. Otani also spoke about Honda’s electric vehicle plans, given e-two wheelers now account for 10% of the total 2W market. Unlike rival firms, which believe that home-charging is enough to meet commuters’ range demand, Otani said that having a robust charging infrastructure is a must. While unveiling the new product line-up, he said that India remains one of Honda's most strategic global markets and the new launches reinforce their multi-pathway approach, with advanced ICE vehicles, electric mobility solutions, and flex-fuel technologies designed to address diverse customer needs and varying infrastructure readiness. He also spoke about increasing localisation, boosting exports and industry outlook. Edited excerpts: 

Two-wheeler sales hit a new high last financial year. You expect the growth rate to continue? 

In the long term, we remain confident about the growth potential of the Indian two-wheeler market. Improving rural infrastructure, rising personal mobility needs, increasing participation of women in the workforce, and growing demand for premium products are expected to continue supporting industry growth. The industry is expected to continue its growth trajectory, although at a more moderate pace. We remain focused on delivering sustainable growth in FY27. We are optimistic about the first half of the year, supported by healthy domestic demand and positive industry fundamentals. The Important thing for us is keeping customers in the Honda ecosystem. It means if a customer has bought a Honda product, they should use our product continuously, and their product should also be a Honda product. 

A bulk of your sales come from affordable models such as Active and Shine. What are your plans to increase your presence in the premium and mid-size segment? 

As you know, we have limited products in the premium segment, but this will change. As the premium segment is growing, we are shifting our focus and utilising our global resources. The mid-size segment is also very important to us. Customers are well informed now as they check on the internet about our global lineup. There is more demand for global models in this segment than domestic models. But if we were to import them as CBU, the numbers would be very limited. For this, Make-in-India is important. So Honda will now start accelerating localisation for premium and mid-size motorcycles. 

EVs are now 10% of the market, and three of your competing firms have taken a lead. Do you think you are pretty late or missed the initial EV boom? 

The long-term vision for us is surely to increase the EV lineup. But customer demand is a little bit unclear at the moment. For example, demand for EVs is now mostly in the South region and downtown areas. In the north, central and rural areas, the demand is low. So this means area by area, there is a difference in demand, depending on energy infrastructure. So Honda is carefully checking the infrastructure, as the product launch is not the only important aspect, and infrastructure is also important. If the charging infrastructure grows, Honda will bring in more EVs. 

Your export grew by 36% to nearly 2 lakh units in Q1FY27. Do you expect exports to grow at a similar pace, and which markets will you be targeting from India? 

Exports were earlier limited because of constraints in the supply chain, but now that the supply chain is improving in India, exports are also expanding. Honda is a global company with its headquarters in Japan. They will decide which markets to target from India.