Honda finalizes ₹600 crore EV plant in Narasapura, Karnataka
Factory E: Honda's New ₹600 Crore EV Manufacturing Hub in Narasapura
Harsh15-Sep-25 10:18 AM
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KOLAR, KARNATAKA—Honda Motorcycle and Scooter India (HMSI) will invest ₹600 crore to establish a new, dedicated electric two-wheeler manufacturing unit in Narasapura, Karnataka. The announcement, made by the Karnataka Industries Minister M.B. Patil in early September 2025, follows a meeting with Honda executives in Japan. This major investment is poised to accelerate Honda's entry into India's competitive electric vehicle (EV) market.
A strategic move for EV leadership
The new facility, internally referred to as "Factory E," will be an expansion of Honda's existing Narasapura plant, which is already the largest two-wheeler factory in India. The move is a significant step in Honda's ambition to become the leading EV two-wheeler manufacturer in the Indian market.
Key aspects of the project include:
- Targeted Production: While some earlier plans suggested a 2028 timeline for a dedicated facility, Honda is already manufacturing its first Indian EVs—the Activa e: and QC1—at its Narasapura plant. The new ₹600 crore investment will likely boost this production, targeting up to 1 million units annually by 2030.
- Modular Platform: The plant will produce vehicles using a new modular platform called "Platform E." This approach allows for the cost-effective and efficient creation of multiple models with both fixed and swappable battery options.
- Domestic and Export Hub: The facility is designed to serve both the growing domestic Indian market and to function as an export hub for other emerging global markets.
- Localization Focus: In line with the "Make in India" initiative, Honda will use a high percentage of locally-sourced components, including in-house developed electric motors and batteries.
Supporting the EV ecosystem
Beyond manufacturing, Honda is simultaneously expanding its ecosystem to support its electric fleet.
- Battery Swapping: The company is expanding its "e:Swap" battery-swapping service, first introduced in Bengaluru and Delhi, to other major cities.
- Infrastructure: Its dealership network of over 6,000 touchpoints will be transformed into "Workshop E" outlets, equipped with charging and battery-swapping stations.
Impact on Karnataka and the EV market
For Karnataka, the investment reinforces the state's push to become a leader in sustainable mobility and advanced manufacturing. For the Indian consumer, it promises a wider range of high-quality, reliable, and potentially more affordable EV two-wheeler options. Honda's measured but determined approach signifies a significant turning point in India's electric two-wheeler market, setting the stage for a period of intensified competition and innovation.