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Honda is gearing up its production line for the upcoming Activa EV scooter.

Activa EV scooter

The company is aiming to produce more than 3 million scooters within this fiscal year.

Honda Motorcycle & Scooter India, which had dialed down its expansion plans before the BS6 emission norms came into effect and even before the pandemic hit, is now ramping up production once again.

Our colleagues over at Autocar Professional have the scoop: Honda has recently installed two new manufacturing lines at their factories in Gujarat and Karnataka. This move is aimed at meeting the increasing demand for both traditional internal combustion engine (ICE) vehicles and electric ones. And here’s the exciting part: They’re gearing up to start production of their new electric scooter at the Karnataka plant, slated to kick off by December 2024. Looks like Honda’s diving headfirst into the electric vehicle game!

A third production line is being added to the Gujarat factory, which is expected to increase the number of units produced by about 660,000. Additionally, they’re planning to set up a specific manufacturing line for electric vehicles (EVs) in the next fiscal year, aiming to start production in the latter half of this financial year. This will add a capacity of about 900,000 units per year. Previously, we mentioned that the company was developing an electric scooter, codenamed K4BA, known as Activa EV, which is slated to be launched in FY25.

According to reports, the company hasn’t quite reached the same level of success it had before the COVID-19 pandemic hit. However, they’re feeling optimistic about the future and are actively expanding their capacities. Honda Motorcycle & Scooter India is aiming for a significant growth of more than 15 percent in the fiscal year 2025. If they achieve this, it will mark the fourth year in a row of continuous growth, slowly but surely getting back to where they were before. Their target for the fiscal year 2025 is to produce over 5.75 million units, coming close to their previous peak of 5.9 million units in fiscal year 2019.

Next financial year, the company is anticipating an 11 percent increase in scooter production, reaching over 3 million units, while motorcycle output is expected to hit 2.65 million units, marking a 23 percent growth. In the previous financial year, Honda Motorcycle & Scooter India saw a 13 percent surge in domestic sales, selling around 4.5 million units and capturing a 25 percent share of the overall two-wheeler market.

For FY24, the company managed to sell approximately 2.5 million scooters, claiming a hefty 43 percent market share. However, in the face of competition from new electric vehicle entrants, they faced some challenges. In contrast, their motorcycle sales reached around 2 million units, bolstering their market share by 17 percent, largely driven by the success of the new Shine 100 model.

Reports suggest that HMSI is gearing up to enter the EV market in the latter half of this financial year with its own electric scooter. To bolster its market position, the company plans to focus on product enhancements. Despite attempts to reach out, Honda Motorcycle & Scooter India has not responded to inquiries.

In the latest figures, the Indian two-wheeler market wrapped up the fiscal year 2024 with a total of 17.97 million units sold, marking a healthy growth of 13.3 percent. Analysts are pointing out that this growth is fueled by a more balanced distribution of income alongside steady economic expansion, all amidst increasing consumer spending. Plus, the promising news of normal rainfall forecasts bodes well for the market, especially as it’s expected to boost demand from rural areas, which have been showing consistent interest in two-wheelers.

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