Exclusive: Honda Targets 6.79 Million 2W Production in FY27; No. 1 Spot Remains Out of Reach

Honda Motorcycle & Scooter India (HMSI) is targeting to produce 6.79 million two-wheelers in the financial year 2027, according to sources familiar with the company’s production plans. 

The Japanese automaker is sharpening its growth strategy for the Indian market with premium motorcycles, scooters, exports, and capacity addition, while Hero MotoCorp continues in the No. 1 position.

HMSI’s total production in FY25 was at 5.86 million units, while output in the April-February period of the current financial year 2026 stands at 5.77 million units. Production for the full FY26 is estimated to be close to 6 million units, and the company is looking at a double-digit increase in the next financial year. 

HMSI did not immediately respond to Autocar Professional’s request for comments.

The automaker’s production in the April-February period of this year represents a growth of 6.7% year-on-year. In terms of dispatches to dealerships, HMSI’s domestic sales during the 11 months of this financial year rose 6.4% to 5.24 million units, while its exports grew 21 % to 583,387 units.

Meanwhile, people familiar with Hero MotoCorp Ltd’s production plans said the automaker is targeting output of around 6.92 million units in the financial year 2027, about 200,000 units higher than HMSI. 

Hero MotoCorp’s sustained leadership, driven by the continued strength of the Hero Splendor franchise and incremental volumes from its electric vehicle brand Vida, has kept it ahead in overall volumes. 

While HMSI continues to benefit from its well-entrenched scooter portfolio, which contributes a substantial share of volumes, the company remains under pressure in the commuter motorcycle segment.

In the commuter segment, HMSI continues to face headwinds against Hero’s deep-rooted dominance, limiting its ability to significantly alter the market hierarchy despite expanding its entry-level portfolio.

In scooters, Honda is by far the market leader, but its earlier dominance has been moderated, with rivals such as TVS Motor Company and Suzuki Motorcycle India steadily eating into its market share.

HMSI is sharpening its focus on premiumisation as a key lever for future volume growth, with plans to build a pipeline of locally manufactured premium motorcycles, a 150cc adventure scooter, and expand its presence in higher-displacement segments.

The strategy is aimed at improving realisations and capturing rising aspirational demand, while continuing to depend on its established scooter and commuter motorcycle portfolio to sustain scale.

Exports are expected to play a larger role in the growth mix, with sources indicating that the company is estimating its exports to total around 620,000 units in FY26. 

The automakers exported 583,387 units in the April-February period of the current FY26, representing a growth of 21% on year. In FY25, HMSI exported 505,012 units, accounting for 8.7% of its total sales.

HMSI has already exported close to 4.8 million units cumulatively across more than 60 countries, and is looking to further leverage India as a global manufacturing hub.
Meanwhile, HMSI plans to expand manufacturing capacity by adding a third production line at its Tapukara plant in Alwar district, Rajasthan, as well as a fourth production line at its Vithalapur plant in Gujarat.

HMSI currently operates four manufacturing facilities in India: Manesar, Haryana (38,000 units), Tapukara, Rajasthan (1.3 million units), Narasipura, Karnataka (2.5 million units), and Vithalapur, Gujarat (1.96 million units) - with a total capacity of 6.14 million units.

The additional fourth line at the Vithalapur facility will add 650,000 units to its annual production capacity, increasing the plant's total output to 2.61 million units. With this expansion, HMSI's total production capacity across India will rise to approximately 7 million units by 2027.

The new line at Tapukara is scheduled to commence operations in 2028 with an annual capacity of 670,000 units, taking the plant’s total capacity to 2.01 million units in two years.