Honda Motorcycle & Scooter India (HMSI) expects to gain a clearer understanding of India’s used electric two-wheeler market over the next three years as it examines resale values, battery health and long-term ownership patterns.
The company is studying how customers respond to electric vehicles after several years of use, particularly as the first generation of electric two-wheelers enters the second-hand market.
The assessment includes battery replacement requirements and the value of electric vehicles over their operating lives.
In an exclusive interaction with Autocar Professional, HMSI President and CEO Tsutsumu Otani said, “We are analysing how to address residual value and how to maintain vehicle value over time. This is a key issue, not just launching new models."
Asked about the timeline for assessing the used-EV market before Honda considers a more aggressive approach towards electric two-wheelers in India, Otani said, “Perhaps within the next three years we will have a clearer understanding.”
He noted that the first wave of electric vehicles entered the market around 2021 and that Honda was beginning to observe how customers responded to used EVs. The company is also examining how vehicle values can be preserved as these products age.
Otani said motorcycle customers have historically expected to use their vehicles for more than ten years, while electric vehicles bring additional considerations related to battery replacement and residual value.
“We would like to study how the second-hand EV market develops because it could support continued EV growth,” he said. Honda is examining customer reactions after purchasing EVs, including how the second-hand market develops as more vehicles complete their initial ownership periods.
The company is also conducting studies on battery health. Otani confirmed that battery-condition assessment forms part of Honda’s work on the used-EV market, particularly as electric two-wheelers begin changing ownership. “Much like smartphones now provide battery-health indicators, EVs will also require reliable methods of evaluating battery condition,” he said.
He added that Honda was studying how similar customer behaviour could develop in the electric vehicle market. Battery condition and the acceptance of used vehicles are among the areas being examined.
Honda’s assessment comes as the company develops its electric two-wheeler portfolio in India. HMSI has introduced the Activa e:, QC1 and QC3, with the latter launched in September 2026 at Rs 1.35 lakh (ex-showroom). The QC3’s initial rollout covers five cities, while Otani confirmed that additional electric products are under consideration without specifying their number or launch timelines.
On additional electric models, he said Honda had more products under consideration, although customer requirements would determine which solutions were suitable.
On the company’s battery-swapping business, Otani said Honda was examining customer requirements across both business-to-business and private ownership segments. He said, “For B2B customers, battery swapping can be useful because there is no need to wait for charging, which can reduce working-time loss for professional users.”
For private customers, Otani pointed to battery subscriptions as another ownership arrangement. Under this model, the battery remains the service provider’s asset rather than the customer’s, allowing buyers to avoid direct battery ownership. He said the arrangement could appeal to customers concerned about battery ownership risks and residual values.
Asked about the response to Honda’s electric scooters, Otani said adoption was growing gradually, including among delivery and professional users. He said battery swapping offered greater benefits to these customers because of their usage requirements.
Otani also discussed the potential differences in electric vehicle adoption across Indian markets. He said EV adoption could accelerate in large cities and urban centres, while biofuels and other energy sources might see greater acceptance in smaller cities and rural areas.
Government objectives, infrastructure availability and regional requirements would influence the country’s future energy mix, he added.
According to VAHAN-based data compiled by Flash Finance, electric two-wheeler registrations in India reached 11.79 lakh units during January-July 2026, an increase of 58.8% year on year.
In July, TVS Motor led the market with 55,892 registrations, followed by Bajaj Auto with 45,910, Ather Energy with 30,704, Hero MotoCorp with 23,003 and Ola Electric with 14,243. HMSI recorded 940 electric two-wheeler registrations during the month, accounting for approximately 0.5% of the segment’s 2.06 lakh registrations.