For years, Honda has dominated the Indian scooter market, securing its position with the ever-popular Activa. Now, in a game-changing move, Chinese EV giant BYD (Build Your Dreams) is set to partner with Honda to enter the Indian scooter market. This powerful collaboration could reshape the country’s two-wheeler industry by introducing new electric models backed by Honda’s deep market presence.
Why BYD is Partnering with Honda
BYD has made a global impact in the electric car market, rapidly expanding its influence. Meanwhile, China’s transition to electric vehicles (EVs) has been swift, with EV sales jumping from 6.2% in 2020 to 45% in 2023. This shift has led traditional automakers to rethink their global strategies. Honda, recognizing the growth potential in India’s EV scooter segment, has chosen BYD as its ally to navigate this transition.
Decline of Foreign Brands in China’s Auto Market
China’s domestic EV revolution has significantly affected foreign brands:
- Ford Motor Co. and Nissan saw sales drop by 81% and 45% respectively since 2017.
- General Motors is struggling, with Buick sales down 66% and Chevrolet sales plummeting 92%.
- Honda’s sales fell by 40% in China, forcing it to look at emerging markets like India and Southeast Asia.
- BYD, which ranked 21st among carmakers in 2017, sold more vehicles in China last year than all top 10 Japanese brands combined.
India & Southeast Asia: The Next Big Two-Wheeler Market
With rising incomes and increasing demand for two-wheelers, India and Southeast Asia have become the fastest-growing scooter and motorcycle markets. According to McKinsey & Co., this sector is expected to grow at 8.7% annually through 2029, compared to just 1% for passenger cars.
Honda’s Strategy: Strengthening Market Leadership
Currently, Honda holds a 40% share of the global scooter market and aims to increase this to 50% by 2030, reaching 60 million unit sales annually. The key driver of this expansion is Honda’s growing focus on electric mobility.
One of the biggest catalysts for this shift was the launch of the Activa e in India—a battery-powered variant of its best-selling model. With BYD’s advanced EV technology and Honda’s brand trust, this partnership could revolutionize the Indian scooter segment, making electric two-wheelers more mainstream and accessible.
