Honda readies production line for upcoming Activa EV scooter

Honda Motorcycle & Scooter India, which had scaled back its expansion plans ahead of the implementation of BS6 emission norms pre-COVID, has again gotten back to increasing output.

Our sister publication, Autocar Professional, can exclusively report that the company has added two manufacturing lines at the Gujarat and Karnataka factories to cater to the growing demand for ICE and electric vehicles. Manufacturing of the upcoming Honda electric scooter will begin by December 2024 at the Karnataka facility.

The third line at the Gujarat factory is likely to bring in additional volumes of 6.6 lakh units, with a dedicated manufacturing line for EVs coming up in FY25 as the company looks to begin production in the second half of this financial year. The cumulative incremental capacity is about 9 lakh units per annum. We had exclusively reported earlier that the company was working on an Activa EV codenamed K4BA, which was set to hit the roads in FY25.

Sources say the company is yet to get back to its pre-COVID peak but is confident of strong growth in the future and hence new capacities are being added. Honda Motorcycle & Scooter India is eying a double-digit growth of over 15 percent in FY25. This will be the fourth consecutive year of growth with the market inching back to its earlier highs. The company is eying a volume of over 5.75 million units in FY25, close to its previous peak of 5.9 million units in FY19.

The company expects scooter output to grow by 11 percent next financial year with volumes of over 3 million units, and motorcycle output of 2.65 million with a growth of 23 percent. During the past financial year, Honda Motorcycle & Scooter India posted a growth of 13 percent in domestic sales with volumes of about 4.5 million units with a market share of 25 percent of the overall two-wheeler market.

The company sold about 2.5 million scooters in FY24, with a market share of 43 percent, as new-age players grabbed market share with their EV offerings. In the motorcycle segment, however, the company sold about 2 million units, growing its market share by 17 percent, led by the new Shine 100. Sources say that HMSI, which aims to foray into the EV space in the second half of this financial year with its EV scooter, will rely on product upgrades to further grow its share. An email sent to Honda Motorcycle & Scooter India did not elicit any response.

The Indian two-wheeler market ended FY24 with total volumes of 17.97 million units, growing by 13.3 percent. Experts say there is better distribution of income with sustained economic growth amid rising consumption, and the news of a normal rainfall augurs well for the two-wheeler market, which has started witnessing continued traction from the rural areas.