Tue Sep 10 16:29:10 UTC 2024: ## Honda Sees Rural Market Lagging, Eyes EV Growth in India
Honda Motorcycle and Scooter India (HMSI) has reported that the rural market for two-wheelers has not performed as expected in the first half of 2024. The company attributes this to factors like a subdued marriage season, the impact of elections, and delayed monsoons. Despite this, HMSI is optimistic about a rebound in the second half of the year.
Director of Sales and Marketing, Yogesh Mathur, highlighted that the rural market contributes significantly to HMSI’s sales, representing 30-35% of their total revenue.
While the company sees growth in motorcycle sales overall, with notable gains in the 125cc segment, sales in the 150-180cc category are declining.
Meanwhile, HMSI is gearing up to enter the electric vehicle (EV) market in India this fiscal year. The company aims for EVs to contribute one-third of their total sales by 2030, reflecting their commitment to the growing EV segment.
HMSI is developing an EV scooter in collaboration with Honda Japan, and is exploring the option of swappable batteries for the model. While government subsidies have been a factor in the EV market, Mathur emphasized that HMSI’s strategy will not rely on subsidies, as they believe the market is mature enough to sustain growth without them.
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