Honda Japan "Considering IPO in Electric Two-Wheeler Sector"

(Photo by WSJ)

[Asia Economy Reporter Yujin Cho] Japanese automaker Honda is reportedly considering an initial public offering (IPO) of its electric two-wheeler business division to expand its electric two-wheeler operations, according to the Wall Street Journal (WSJ) on the 13th (local time).

Nomura Yoshishike, Executive Director of Honda, said in an interview with WSJ, "We are considering spinning off the electric two-wheeler business and listing the division on the stock market."

He added, "The listing discussions are still in the early stages, but if we determine that reorganizing the company's internal structure could create a bigger momentum toward electrification, (the listing) would be a good move."

However, he noted that currently there is no need for external funding to raise capital for the electric two-wheeler business.

Honda held a press conference at its Tokyo headquarters the day before and announced plans to launch more than 10 types of electric two-wheelers in the global market within the next three years.

They also revealed goals to convert 3.5 million units, equivalent to 15% of global two-wheeler sales, to electric two-wheelers by 2030, and to switch all two-wheeler production to electric vehicles by the 2040s.

Although Honda is the world leader in two-wheeler sales, it had not previously disclosed specific targets or plans for its electric two-wheeler business.

Honda aims to increase annual electric two-wheeler sales from the current 100,000 to 200,000 units to 3.5 million units, maintaining its position as a global top maker in electric two-wheelers as well.

To achieve this, Honda plans to first launch two small electric two-wheelers in the Asian market by 2024?2025, followed by three large two-wheelers in the U.S. and Europe.

They are also considering equipping two-wheelers with next-generation solid-state batteries, currently being developed for electric vehicles. Solid-state batteries replace the liquid electrolyte between the cathode and anode with a solid, significantly improving safety and performance, and are regarded as next-generation batteries.

Honda has maintained a leading position in the global two-wheeler market with a 30% market share. Despite supply chain disruptions causing sluggish vehicle sales from April to June, Honda’s two-wheeler division accounted for half of the company’s overall operating profit during that period.