Honda India Power Products Limited (HIPL) has announced significant strategic moves aimed at expanding its business operations and enhancing corporate governance. The company received shareholder approval for key initiatives during its 40th Annual General Meeting (AGM) held on September 25, 2025.

Business Expansion into Electric Motors

HIPL has secured member approval to alter its Memorandum of Association (MOA), subject to the Registrar of Companies' approval. This amendment paves the way for the company to venture into the design, development, and manufacturing of electric motor units, branded as 'eGX'.

The rationale behind this expansion is rooted in evolving industry trends and a growing emphasis on sustainability. HIPL aims to cater to applications where conventional engine-powered machinery faces challenges, particularly in noise and emission-sensitive environments such as educational institutions, hospitals, indoor facilities, and residential construction zones.

New Product Line: eGX Electric Motors

The introduction of the 'eGX' line of electric motors represents a strategic pivot for HIPL, aligning with the global shift towards cleaner and quieter power solutions. This move is expected to position the company competitively in the market for environmentally friendly power products.

Appointment of New Secretarial Auditor

In addition to its business expansion plans, HIPL has taken steps to strengthen its corporate governance framework. Shareholders approved the appointment of M/s TVA & Co. LLP as the company's Secretarial Auditor for a term of five consecutive financial years, from FY 2025-26 to FY 2029-30.

TVA & Co. LLP is described as a firm of Company Secretaries providing legal and secretarial services. The firm is peer-reviewed (Peer Review No.: 6544/2025) and is eligible for appointment as per SEBI Listing Regulations.

Other Key Decisions

The AGM also saw the approval of several other important matters:

1. Adoption of audited financial statements for the year ended March 31, 2025
2. Declaration of final dividend on equity shares for FY 2024-25
3. Re-appointment of Mr. Shigeki Iwama as a director
4. Ratification of remuneration for Cost Auditors
5. Approval for payment of royalty to Honda Motor Co. Ltd., Japan for FY 2026-27
6. Approval of related party transactions with Honda Motor Co. Ltd., Japan for FY 2026-27

Looking Ahead

These developments signal HIPL's intent to diversify its product portfolio and adapt to changing market demands while maintaining strong corporate governance practices. The expansion into electric motors, in particular, could open up new growth avenues for the company in the evolving power products landscape.

Honda India Power Products has announced significant price reductions for its popular Activa scooter range, following the Indian government's decision to lower the Goods and Services Tax (GST) on two-wheelers up to 350cc. The price cuts, which took effect on September 22, range from ₹6,332 to ₹7,831 across different Activa models, making these widely-used scooters more affordable for Indian consumers.

Key Price Changes

Impact on Honda's Product Line

The price reductions are not limited to the Activa series. Honda's Dio series of scooters has also seen price cuts ranging from ₹5,861 to ₹7,626. This move affects nearly all of Honda's two-wheeler lineup in India, as the GST reduction applies to vehicles up to 350cc, which encompasses the vast majority of scooters and motorcycles sold in the country.

Government's Tax Reform

The price reduction comes as a result of the Indian government's decision to reduce the GST rate on two-wheelers up to 350cc from 28% to 18%. Finance Minister Nirmala Sitharaman announced these GST reforms as part of a broader initiative to simplify the tax framework and provide relief to consumers.

Market Impact

This tax cut is expected to have a significant impact on the Indian two-wheeler market, affecting nearly 98% of the vehicles sold in this segment. The timing of the price reduction is particularly noteworthy as it coincides with the approaching festive season in India, a period traditionally associated with increased consumer spending.

Industry Outlook

The automotive industry, particularly the two-wheeler segment, is likely to see a boost in sales due to these price reductions. As Honda passes on the full benefit of the tax cut to consumers, it positions itself competitively in the market. The increased affordability of popular models like the Activa could potentially stimulate demand and help revitalize the sector.

The move is expected to not only benefit consumers but also support the broader automotive industry, potentially leading to increased production and sales volumes. As the festive season approaches, these price cuts could serve as a catalyst for growth in the two-wheeler market, with Honda well-positioned to capitalize on the increased consumer interest.