New Delhi: Witnessing robust demand for electric scooters in the country, Honda Motorcycle & Scooter India (HMSI) is ready to foray into this segment by early 2023, as per a senior executive. The country’s second largest two-wheeler maker did not reveal the name of the first product that will hit the Indian market under this umbrella, but is certain to launch its highest selling scooter Activa in the electric avatar.

For product and technology, HMSI is in process to form a team in collaboration with the engineers of Honda Motorcycle Japan that will help the company in developing core technologies and platforms for the electric scooters to suit Indian requirements, Atsushi Ogata, Managing Director, President & CEO, HMSI said.

“In the last six months, we have had serious discussions with our team in Japan, where we are running a bunch of popular electric scooters. We have done our feasibility studies and now we are all set to embark on the actual development stage in collaboration with our Japanese engineers,” Ogata said on the sidelines of the launch of its mid-segment motorcycle CB500F.

When asked if the company will shift its focus from its conventional scooter category to the electric models, Ogata said that Honda’s entry-level scooter Activa (Internal combustion engine version ) will remain dominant in its area of long-distance travel within the city in the next five years.

“With the prices of petrol going up, the demand for battery-operated scooters is on the rise. We are creating a ‘futuristic Activa’ which in itself will be a new segment that will cater to the additional requirements of short distance travel within the city in urban and semi-urban regions,” Ogata explained.

Notably in the last financial year, Honda Activa was the highest selling scooter model and second highest selling two-wheeler model in the country cloaking an overall sales of 17,08,305 units.

Industry experts expect the Indian EV market to expand at a CAGR of 77% by value between 2017 and 2025, where electric two-wheelers hold a major chunk. The electric two-wheeler market in India is soaring on account of increased government policies supporting battery-powered vehicles, the growing awareness toward the environment, fuel prices , and stringent emission norms.

Out of these, the cost-effectiveness of EVs due to government incentives and long-term fuel savings are key factors pushing the sales of electric scooters in India.

Highlighting on the localisation efforts, Ogata said that HMSI, which is also a wholly owned subsidiary of Honda Motor Company, Japan, is committed to launch the upcoming electric scooters in the domestic market with highest possible localized content that will include locally developed components like battery, electronic control unit, and the motors.

Despite the increasing use case of EVs, Ogata believes that infrastructure continues to remain a major concern for this market and relying on one charging solution will only delay the penetration of electric mobility in the Indian market. And therefore, HMSI is currently open to explore both the battery charging and swapping methods for its upcoming models, he added.

Notably, Honda Power Pack Energy India (HEID), Honda Motor’s subsidiary for battery swap service, is already in function for swappable battery solution in Bengaluru since November last year, wherein it provides batteries for e-rickshaw. Ogata highlighted this solution could be adopted for its e-scooter as well.

According to the Gurugram-based company the use of this service will significantly reduce drivers’ initial cost to purchase EV as well as reducing concern about range anxiety and running out of batteries.