Honda Motorcycle & Scooter India expects FY27 domestic sales volume at 6 million units

New Delhi: Honda Motorcycle & Scooter India (HMSI) expects its domestic sales volumes to reach 6 million units during the current financial year ending March 2027, said HMSI President and CEO Tsutsumu Otani.

This would represent around 4.3 per cent year-on-year growth compared to domestic dispatches of 5.75 million units in FY 2025-26.

Honda Motorcycle & Scooter India is the second-largest two-wheeler manufacturer in India.


"This year, the market and Honda's sales have been very good. Now, with the Navratri season starting, it is going quite well. Considering the current pace, Honda's domestic sales volume may be around six million units for the year," Otani told PTI in an interview.

In the first half of FY27, Honda's domestic two-wheeler dispatches rose 13.5 per cent YoY to 3.04 million units with a market share of around 25 per cent.

Meanwhile, the domestic two-wheeler industry sales rose 17.6 per cent during the period to 12.09 million units, according to data from the Society of Indian Automobile Manufacturers (SIAM).

Around 60 per cent of Honda's two-wheeler volume comes from the scooter segment, which has been the Japanese automaker's forte for a long time. For the broader industry, the contribution from scooters is 40 per cent, with the motorcycle segment dominating sales volumes.

Otani said the scooter segment is growing, in line with a wider global shift from light motorcycles to scooters. He added that the mix in India would depend on how customers use their vehicles.

He noted that demand is growing across all categories and Honda will focus on both entry-level and premium motorcycles apart from scooters.

While more customers are moving towards premium products, the entry-level market is also expanding, he said, adding the company can draw on its wide global product range and adapt models to suit Indian buyers.

Recently, Honda unveiled 10 two-wheeler models, including the adventure scooter ADV 160, which is E85 fuel-compliant, the QC3 electric scooter, Rebel 300, XR L300 and XR300 Rally, the CB500 roadster, and the CB350 range of modern classics.

The automaker will expand its production capacity to 8 million units from the current 6.5 million units by 2028, with two new production lines coming up at its existing facilities in Tapukara and Vithalapur in Rajasthan.

In fiscal 2026, Honda produced 6.32 million two-wheelers, of which 5.75 million units were dispatched to the domestic market and 6,20,275 units were exported.

The additional capacity planned is for both internal combustion engine and electric vehicle models.

Honda entered the electric vehicle market in early 2025 with two scooter models, but is yet to see major traction in sales, even as electric vehicle adoption in this segment grows and other established OEMs (original equipment manufacturers) step up competition.

Otani indicated that Honda is looking at a multi-fuel strategy that includes petrol, flex-fuel and electric vehicles, rather than focusing on a single powertrain.

"The powertrain choice depends on India's social infrastructure. Electric vehicles are being promoted by the government, so that market is increasing. On the other hand, biofuels are also being promoted. We have E20 now, and the next stage may be a higher ethanol blend.

"Therefore, the powertrain will depend on the evolving social infrastructure. Shifting all vehicles from ICE to EV may be difficult when we consider the required infrastructure. I think EV adoption will accelerate in some areas. In other areas, there may be a shift from petrol to biofuels, at least initially," he said.

When asked about his outlook on the electric two-wheeler market, Otani said it is difficult to predict growth because the second-hand market is still developing and buyers are still working out how to assess an electric vehicle's long-term value.