- HMSI targets 6.79 million units by FY2027 with strong export and premium segment push
- Capacity expansion and premiumisation strategy aim to close gap with Hero MotoCorp
Production Growth and Market Position
HMSI recorded production of 5.77 million units during April–February FY26, marking a 6.7% year-on-year increase, while domestic dispatches rose 6.4% to 5.24 million units. Exports stood out with a robust 21% growth, reaching 583,387 units during the same period. Despite this progress, Hero MotoCorp continues to dominate overall volumes, targeting approximately 6.92 million units in FY2027, supported by its strong commuter motorcycle portfolio and the continued success of the Splendor lineup.
Segment Dynamics and Competitive Pressure
HMSI maintains a strong foothold in the scooter segment, where it continues to lead the market, although competitors like TVS Motor Company and Suzuki Motorcycle India are gradually gaining share. In contrast, the commuter motorcycle segment remains a challenge, where Hero’s entrenched dominance restricts HMSI’s ability to significantly shift market dynamics. This dual reality is pushing HMSI to rethink its growth levers beyond traditional volume-driven strategies.
Premiumisation Strategy and Product Pipeline
The company is increasingly focusing on premium motorcycles and higher-displacement segments to enhance profitability and brand positioning. Plans include locally manufactured premium models and the introduction of a 150cc adventure scooter, targeting aspirational buyers. This shift is expected to improve realisations while complementing its existing mass-market scooter and commuter portfolio, ensuring both scale and value growth in the evolving two-wheeler landscape.
Export Expansion and Global Manufacturing Role
Exports are becoming a critical pillar of HMSI’s growth strategy, with projections indicating shipments could reach around 620,000 units in FY26. The company has already exported nearly 4.8 million units cumulatively across more than 60 countries. This reinforces India’s role as a global manufacturing hub for Honda, supporting both scale efficiencies and international market penetration.
Capacity Expansion Across Key Plants
HMSI is significantly expanding its manufacturing footprint to support future demand. The company plans to add a fourth production line at its Vithalapur plant in Gujarat, increasing capacity by 650,000 units and taking the plant’s total to 2.61 million units. Additionally, a third production line at Tapukara in Rajasthan is scheduled for 2028, adding 670,000 units annually. These expansions will push HMSI’s total production capacity in India to around 7 million units by 2027.
Below table summarizes the key data:
| Metric | Value |
|---|---|
| FY25 Production | 5.86 Million Units |
| FY26 Estimated Production | ~6 Million Units |
| FY2027 Target | 6.79 Million Units |
| Exports FY26 (Apr-Feb) | 583,387 Units |
With a combination of capacity expansion, export growth, and premiumisation, HMSI is positioning itself for sustained long-term growth while attempting to narrow the gap with its closest competitor in India’s highly competitive two-wheeler market.
Frequently Asked Questions
What is Honda Motorcycle & Scooter India’s production target for FY2027?
Honda Motorcycle & Scooter India aims to produce 6.79 million two-wheelers in FY2027, reflecting a strong growth trajectory supported by exports and premiumisation. The company is scaling manufacturing capacity and expanding product offerings to meet rising demand. This target builds on steady increases from previous years and aligns with its strategy to strengthen its position in both domestic and global markets while improving profitability through higher-value segments.
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