The global electric motorcycle market is expected to grow toward 2035 due to increased demand in India, ASEAN, and Europe, but demand is expected to recede in China, where the birthrate is declining and aging rapidly after 2030.

Under these circumstances, China’s leading electric vehicle manufacturers, such as Yadea, AIMA, and Luyuan, will launch state-of-the-art smart factories with the latest equipment and digital technology, and focus on developing products with the latest battery and motor technology to reduce costs and improve efficiency of electricity consumption. They are also working to strengthen and expand their overseas business, particularly in Europe and ASEAN countries.

In India, where we have introduced FAME II, a measure to accelerate the spread of electric vehicles and promote their production, sales of electric motorcycles expanded to 860,000 units in 2023, up 230,000 units from the previous year, due to soaring gasoline prices as well as a series of new product launches. Demand is also on the rise in Thailand and Indonesia, which have introduced subsidies for the purchase of electric vehicles, although electric motorcycle sales are still around 20,000 units.

In Europe, as part of its efforts to become carbon neutral, the country has introduced a subsidy system for the purchase of electric motorcycles and tax incentives, and the ratio of electric vehicles has been increasing in France, Germany, Spain, and other countries, but the ratio has declined by 2023. However, the ratio of electric vehicles is expected to increase significantly in the future due to stricter regulations on driving internal combustion engine vehicles in urban areas, in addition to stricter exhaust gas regulations.

Honda, the world’s largest motorcycle manufacturer, will launch its electric vehicle business in earnest around 2027 by launching plants dedicated to electric motorcycles in India and Indonesia.