Honda will stop production of fuel motorcycles

Honda announced on September 13 that it would stop producing two wheeled gasoline vehicles in the mid 1940s. The new car will be converted to a pure electric motorcycle. In the huge markets of India and China, local manufacturers vigorously develop pure electric motorcycle business. Honda will rely on its new strategy to keep its share of the world's top 30%.

According to the Japanese Economic News Network, Honda Vice President Hiroshi Takeuchi said at a briefing held at the headquarters of Tokyo Metropolitan Area on the 13th, "In the past, two wheeled vehicles have been making profits while reducing fixed costs. By using manufacturing technology, electric motorcycles can also maintain high profits".

At present, Honda has launched motorcycles of pure electric vehicles (HV) and hybrid electric vehicles (HV), and will only promote electrification in the field of pure electric vehicles in the future. First, more than 10 pure electric motorcycles will be launched before 2025. Honda's electric motorcycles currently have an annual sales volume of 100000 to 200000, less than 1% of the total. It will increase to 1 million vehicles by 2026 and 3.5 million vehicles by 2030, accounting for 15% of the total.

Nishiki Nomura, the executive director in charge of the two rounds of business, said, "When the number of vehicles reaches 1 million every year, the mass production effect starts to appear. It will be realized as soon as possible". Honda will expand sales in India, Southeast Asia and China at the same time.

In India, Honda will launch models that support biofuels, including hybrid, after 2023. The company also disclosed its plan to launch "networked" motorcycles that can guide charging stations and routes in succession after 2024.

According to the prediction of Yano Economic Research Institute of Japan, the global market size of two wheeled vehicles in 2030 will increase by 18% to 65.76 million vehicles compared with 2020, when the COVID-19 caused a decline in demand. It is estimated that the penetration rate of electric two wheel vehicles will expand from 4.8% in 2020 to 11.4-19.8% by 2030.

The global competition of electric motorcycles has begun. According to the statistics of the survey company Mark Lines, the sales volume of motorcycles in China will be 17.85 million in 2021, of which 20% (3.15 million) will be electric vehicles. Jiangsu Xiaoniu Electric Technology and Yadi have risen. Honda's Shimizu Nomura said, "The competitors are in a leading position, which should not be underestimated.".