Honda Is Still Karnataka’s Hero. Where’s Its ₹600-Crore EV Factory?

Honda already has a factory in Narasapura, in Karnataka’s Kolar district. It also drew up plans for a dedicated electric two-wheeler facility on the campus. In February 2025, Karnataka listed that project as a ₹600 crore investment commitment. On November 8, industries minister M.B. Patil again rejected Union heavy industries minister HD Kumaraswamy’s claim that Honda was pulling out. The disputed investment concerns what Honda was going to build next.

What started the row?

On October 31, Kumaraswamy alleged that Honda Motorcycle & Scooter India, the Japanese company’s Indian two-wheeler business, had decided to withdraw its proposed electric vehicle project at Narasapura. Patil rejected the claim the next day. He pointed to Honda’s existing operations and said the company wanted to expand electric two-wheeler production on the campus. In his latest remarks, carried by ANI, Patil said Honda executives had met him and were happy with Karnataka. Honda’s own public account has yet to settle the fate of the dedicated factory.

What is already running at Narasapura?

Honda has made two-wheelers there since 2013. In 2017, the company opened a fourth assembly line and said the factory could then make up to 24 lakh vehicles a year. Honda said at the time that 26 suppliers had set up local units alongside it. That gives a sense of what grew around the factory. A decision about a future electric plant would affect what gets added to that network. The existing site is still listed among Honda’s four Indian two-wheeler factories.

What was the ₹600 crore supposed to buy?

A facility focused on electric two-wheelers. When Honda unveiled Factory E in 2023, its India chief said the company planned to convert a petrol-vehicle assembly line at Narasapura. The goal was to start with capacity for six lakh electric two-wheelers a year and raise it to 10 lakh by 2030. Karnataka counted ₹600 crore as a commitment at its February 2025 investor summit. The summit record gives no breakdown of how much was spent.

Has Honda cancelled the dedicated factory?

Honda has yet to give a public answer on the Kolar project. Its October 9 integrated report said it still planned a factory dedicated to electric motorcycles in India, with production scaled to demand. The passage gave no location. On October 27, The Financial Express reported, citing unnamed sources, that Honda had dropped the dedicated Narasapura project and planned to make electric two-wheelers at existing factories. The newspaper said Honda had yet to answer its queries when it published. Patil’s latest remarks back Honda’s presence in Karnataka. They give no revised budget or opening date for Factory E.

How could Honda make EVs in Kolar without Factory E?

Honda named Narasapura as the production site for both of its first electric scooters when it unveiled them in 2024. The open question is how much more it will invest there. Honda could use space and equipment it already has and add capacity as orders grow. Dedicating an entire line to electric vehicles would give it room to build more of them and set up the line around parts that several models share.

What do Honda’s electric scooters tell us about demand?

Honda has already put two different designs on sale. The Activa e: uses batteries riders can exchange at designated stations. The QC1 has a fixed battery that can be charged at home. In September 2026, registrations for the two totalled 1,605, according to VAHAN data reported by Times of India Auto. The TVS iQube alone registered 45,320 that month. That one-month snapshot shows how far behind the market leader Honda’s first two models were.

Where is Honda putting money into new production?

It has named two projects. A ₹920 crore line at Vithalapur in Gujarat is scheduled to open in 2027 and add capacity for 6.5 lakh two-wheelers a year. A ₹1,500 crore line at Tapukara in Rajasthan is due to open in 2028 and add 6.7 lakh. The Rajasthan line can make commuter scooters and motorcycles. With these and other planned additions, Honda aims to raise its annual Indian capacity from 62.5 lakh to about 80 lakh by 2028. That figure covers its two-wheeler business as a whole.

What does the 135-acre figure tell us?

Patil says Karnataka allotted Honda 135 acres in phases at Narasapura from 2011 onwards. Honda’s factory page describes a 96-acre operating plant. A project-specific allotment order would show which parcel, if any, was earmarked for Factory E.