Honda Motor Company, Ltd. HMC sets the global annual sales target of electric motorcycles at 4 million units in 2030, up 500,000 units from the previous outlook of 3.5 million units.
Honda announced that its global automobile output totaled 405,276 units in October, up 22.8% from the same month last year.
The Japanese auto behemoth plans to invest 500 billion yen (~$3.4 billion) by 2030, introducing 30 electric models globally. Honda, which is investing 100 billion yen over the 5-year period from 2021 to 2025 for the electrification of its motorcycles, will invest an additional 400 billion yen over 2026-2030.
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Honda will begin the operation of dedicated electric motorcycle production plants globally starting around 2027.
The company will further accelerate cost reduction initiatives and reduce the current cost of electric motorcycles by 50%.
The company said in a statement that the length of assembly lines will be reduced by approximately 40% compared to conventional lines through the adoption of new technologies such as modularization technology.
Honda will strive to achieve targets for 2030 operating profit margin of more than 5% for the electric motorcycle business and more than 10% for the entire motorcycle business.
For 2031 and beyond, Honda will aim to achieve an operating profit margin of more than 10% for the electric motorcycle business and increase the total profit amount.
Honda will establish "Experience Centers" in major cities in India, ASEAN and other countries, where customers can experience the value Honda wants to offer through its electric motorcycles.
As for batteries, in addition to the ternary lithium-ion batteries used in electric models currently in the market, Honda has been developing lithium ferro-phosphate (LFP) batteries, planning to adopt them in 2025.
"Having a variety of batteries, each with different strengths in terms of output range and cost, will enable Honda to accommodate a wider range of use applications and expand the range of product variations," the company said.
In the mid- to long-term, Honda will explore the adoption of batteries with high energy density, with an eye toward the utilization of all-solid-state batteries currently under development.
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Price Action: HMC shares closed lower by 0.64% to $30.93 on Tuesday.
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