Japanese automotive major Honda Motor Co, has announced a strategic realignment of its electrification roadmap, responding to evolving global market conditions and regulatory landscapes.

In a recent business briefing, Toshihiro Mibe, Director, President and Representative Executive Officer (Global CEO), emphasised on the company's commitment to achieving carbon neutrality and zero traffic fatalities by 2050, while adapting to current challenges.

He reiterated that Honda's initial target to achieve 100 percent global sales of electric vehicles (EVs) and fuel cell electric vehicles (FCEVs) by 2040 remains unchanged. However, the company acknowledges a slower-than-anticipated adoption of EVs, particularly in the United States and Europe, due to relaxed environmental regulations and market uncertainties.

Conversely, hybrid-electric vehicles (HEVs) are experiencing increased demand, offering a practical solution for reducing CO2 emissions without the immediate need for extensive charging infrastructure.

Two-pronged strategy

To navigate these shifts, Honda has outlined two primary strategic directions:

• Enhancing EV and HEV Competitiveness: Honda aims to integrate intelligent technologies into its EV and HEV models, focusing on advanced driver assistance systems (ADAS) and connected services to deliver new value to customers.

• Reassessing Powertrain Portfolio: The company plans to diversify its powertrain offerings, balancing the development of EVs, HEVs and internal combustion engine (ICE) vehicles to meet varying regional demands and regulatory requirements.

Recognising the scale of investment required for electrification and intelligent technologies, Honda is exploring strategic partnerships, including ongoing discussions with Nissan and Mitsubishi Motors. While a full business integration is not currently planned, these collaborations aim to strengthen shared technological capabilities and market presence.

The Japanese automaker which had announced an ambitious plan to invest 10 trillion YEN towards establishing a robust EV value chain, exemplified by its planned battery-focused project in Canada. Now, the company has revised the CAPEX to 7 trillion YEN till 31 March 2031.

“As for EVs, due to the recent market slowdown, our EV sales ratio in 2030 is now expected to fall below the previously announced target of 30 percent. On the other hand, the demand for HEV models is high. Therefore, we will position our HEVs, mostly next-generation HEV models which we will introduce in 2027 onward, as a group of products that will play a key role during the transition period towards the popularisation of EVs,” said Mibe.

The company targets total automobile sales volume of 3.6 million units, with a HEV sales target of 2.2 million units by 2030.  

Two-wheeler sales

Honda Motor Co. announced that its global two-wheeler sales reached a record 20.57 million units for the FY2025, capturing approximately 40 percent of the global two-wheeler market. The company set new all-time sales records in 37 countries and territories, reinforcing its leadership position in the two-wheeler segment.

Looking ahead, Honda expects continued growth in global motorcycle demand, particularly across the Global South, with India – a key market with a growing population and rising income levels – at the forefront. Industry-wide sales are projected to increase from the current 50 million units to approximately 60 million by 2030.

To capitalise on this growth, Honda plans to introduce a broader range of two-wheelers tailored to the varied needs of global customers. It will also optimise its supply chain to ensure more efficient delivery of both internal combustion engine (ICE) and electric models.

As part of its commitment to environmental leadership, Honda is accelerating the electrification of its motorcycle lineup. This includes improving fuel efficiency in ICE models and expanding its range of flex-fuel compatible options.

In early 2025, Honda launched the Active e: and QC1 electric models in India. The CUV e: and ICON e:, designed as global electric commuter models, have already rolled out in Indonesia, Vietnam, Thailand and the Philippines, with plans to expand to Europe and Japan later this year.

In a major strategic move, Honda will begin production of electric motorcycles at a dedicated, high-efficiency plant in India starting in 2028. This facility will focus on modularised models developed exclusively for electric platforms, aiming to boost affordability and scalability in electric two-wheelers.

Through these initiatives, Honda aims to broaden access to electric motorcycles, ultimately targeting the top position in the global electric motorcycle market.

By continuing to launch competitive products and strengthening its supply chain for both ICE and electric vehicles, Honda is positioning itself for long-term profitability. The company aims to achieve a 50 percent global market share and a return on sales (ROS) exceeding 15 percent by fiscal year 2031.

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The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, has signed a Memorandum of Understanding (MoU) with Bengaluru-based electric vehicle maker Ather Energy to accelerate growth of India’s clean mobility and advanced manufacturing sectors. The collaboration is part of the Build in Bharat initiative led by the Startup Policy Forum (SPF), a coalition of over 50 innovation-focused startups.

As per the understanding, the partners will focus on strategic mentorship for deep-tech startups, infrastructure support for startups in the EV value chain, joint innovation programs such as the Bharat Startup Grand Challenge, co-hosted talent and skill development initiatives and participation in events like Startup Mahakumbh along with on-ground exposure visits.

The MoU was signed in the presence of Sanjiv Singh, Joint Secretary, DPIIT and Tarun Mehta, Co-founder and CEO, Ather Energy.

Sanjiv Singh, said, “The electric mobility sector in India is entering a transformative phase. Through this partnership with Ather Energy, we aim to catalyse the development of an enabling environment where startups can contribute meaningfully to EV manufacturing, battery innovation, and clean energy solutions.”

Tarun Mehta, said, “We are happy to collaborate with DPIIT to strengthen support systems for hardware and deep-tech startups. With policy support and stronger industry participation, this initiative can help founders tackle core technology challenges and scale high-quality products from India.”

Shweta Rajpal Kohli, President and CEO, Startup Policy Forum, added, “This partnership between DPIIT and Ather Energy brings to life the Startup Policy Forum’s Build in Bharat initiative. Unlocking the potential of India's manufacturing sector through collaboration is key to building a globally competitive innovation ecosystem.”

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Singapore-headquartered engineering solutions company Quest Global has signed a multi-year partnership with Andretti Formula E as the team’s official Engineering Technology Partner. This collaboration officially launched at the 2025 London E-Prix, will see the partners closely work towards elevating the performance of Andretti Formula E cars and drivers.

With more than 25 years of experience, Quest Global will utilise key learnings from its talented team of over 21,000 engineers spread across 17 countries.

Quest Global has partnered with Andretti Formula E, starting with support for their remote operations room in Banbury, UK. This facility is central to race strategy and performance analysis during E-Prix weekends. The collaboration aims to improve data analysis, decision-making and performance tracking for Andretti Formula E team, enhancing their competitive position in Formula E. The partnership will also include the development of Andretti's GEN4 car, scheduled to debut in Season 13, highlighting Quest Global's involvement in the future of electric motorsport.

Andrew Lewis, Global Business Head – Automotive & Rail, Quest Global, said, “This collaboration with Andretti Formula E is a thrilling opportunity for us to demonstrate how cutting-edge engineering solutions can drive innovation and performance. Together, we will push the boundaries of what’s possible, combining our technical strength with Andretti’s competitive spirit. From race weekends to the GEN4 car development, this partnership highlights the transformative potential of engineering to inspire progress far beyond the racetrack.”

Roger Griffiths, Team Principal of Andretti Formula E, said, “We are excited to welcome Quest Global as a key part of our team. Their experience and expertise in leveraging engineering to solve complex challenges make them a perfect fit for us as we aim to continuously raise the bar in a championship built on innovation and agility. With Quest Global by our side, we are looking forward to enhancing our engineering operations and performance on and off the track.”

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Helios Climate (HC), an investment platform, has partnered with the Private Infrastructure Development Group (PIDG) to invest in Bengaluru-headquartered battery swapping solutions provider for electric vehicles – Sun Mobility.

This investment contributes to the approximately USD 135 million raised by Sun Mobility over the past year and will support the launch towards establishing battery swapping network in Africa along with contributing to Sun Mobility's growth in India.

Established in 2017 by Sun Group and the Maini Group, Sun Mobility operates over 900 battery swapping stations, powering a fleet of over 50,000 vehicles. Its battery technology, developed and produced in India, works across two-wheelers, three-wheelers, four-wheelers and heavy electric vehicles through various global OEM partners. Indian Oil Corporation, Vitol (parent of Vivo Energy) and Bosch are among Sun Mobility’s early investors.

Tavraj Banga, Partner & Co-Head, Helios Climate, said, “Sun Mobility is a global category leader with a differentiated and proven solution for the e-mobility space. Their platform’s interoperability spans multiple OEMs and vehicle types, allowing electrification at scale. Coupled with the economic and decarbonisation benefits, it is an ideal solution for emerging markets. We’re proud to support their entry into Africa and work alongside their key partners to deliver scalable, affordable and climate-resilient mobility solutions on the continent. We look forward to working alongside the company and its shareholders, including Vitol, Indian Oil and Bosch, to realise this potential.”

Chetan Maini, Co-Founder & Chairman, SUN Mobility, said, “We’ve built a modular, fast, and scalable battery swapping ecosystem that adapts to real-world mobility needs. With over 1.4 million monthly swaps in India and growing global interest, we’re excited to extend our proven model to emerging markets like Africa. The region’s rapid urbanisation, reliance on two and three-wheelers and need for robust HEV solutions position it perfectly to leapfrog into clean mobility.”

As per estimates, two-wheelers and three-wheelers contribute a significant portion of CO2 emissions in Africa, with the market forecasted to exceed 1.9 million vehicles annually by 2030. This presents a significant growth opportunity for clean, cost-effective electrification. This investment will support the growth of the e-mobility supply chain in Africa and South-East Asia (batteries and quick interchange stations).

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Musashi India, a wholly-owned subsidiary of Musashi Seimitsu Industries, Japan, has announced its plans to setup a new R&D and prototyping facility – Musashi Technology Excellence Centre (MTEC) at the Atria University Campus in Bengaluru. The company a leading supplier for precision automotive systems in India is commemorating 23 years of operations in the country.

Interestingly, the company’s new R&D facility for new energy storage systems and e-mobility will focus on testing and validation of new technologies developed by Musashi Global, in collaboration with its international partners and vendors. It aims to invest around INR 100 million towards the new facility in the first year. The R&D facility will not only focus on developing advanced energy storage solutions for the Indian market, but also serve as a rapid prototyping and localisation hub for the Japanese company.

Naoya Nishimura, CEO, Musashi India and Africa Region, said, “Musashi India’s journey began in 2002 with a single customer, and we have since grown steadily, expanding our presence and partnerships with the top automotive OEMs in the country. Our progress has been driven by the strong foundation laid by our predecessors. As we look ahead, it is time to evolve into a truly Indian operation, grounded in our core values of customer-first and ownership. Musashi India is proudly Indian, and its future depends on the leadership and initiative of each member of our team. The establishment of MTEC is a step towards building the number one operation in India, and I believe we will achieve it together.”

Masaru Maeda, Chief E-Mobility Officer, Musashi Seimitsu Industries, added, “The launch of the Musashi Technology Excellence Centre marks a pivotal moment in our global e-mobility journey. India is a key market for next-generation energy solutions, and with MTEC, we are strengthening our commitment to innovation, sustainability, and localized product development. We look forward to accelerating new breakthroughs that serve both Indian and global needs.”

The phased development of the centre will leverage Musashi’s longstanding automotive manufacturing experience in India, Musashi Energy Solutions’ hybrid supercapacitor production capabilities and strategic guidance from Musashi Seimitsu Industries in Japan.

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