Honda Motorcycle & Scooter India is ramping up production in the current financial year, with expectations of over 3 million scooter units being manufactured. The company, which had slowed down expansion plans prior to the implementation of BS6 emission norms due to COVID, is now back on track with new manufacturing lines being added at its Gujarat and Karnataka factories.
The addition of these new lines will cater to the increasing demand for both ICE (internal combustion engine) and electric vehicles. Production of the upcoming Honda electric scooter is set to begin at the Karnataka facility by December 2024. In addition, a third manufacturing line at the Gujarat factory is expected to bring in an additional 6.6 lakh units, with a dedicated line for EVs planned for the second half of this financial year.
Looking ahead, Honda Motorcycle & Scooter India is aiming for double-digit growth of over 15 percent in FY25, with a target volume of over 5.75 million units. The company is confident in its growth trajectory, despite not yet reaching pre-COVID levels. This growth will be supported by the introduction of new models, including the Activa EV codenamed K4BA.
In terms of sales performance, Honda Motorcycle & Scooter India saw a 13 percent growth in domestic sales in the past financial year, with a market share of 25 percent in the overall two-wheeler market. Scooter sales accounted for 2.5 million units with a 43 percent market share, while motorcycle sales reached 2 million units with a market share growth of 17 percent.
The Indian two-wheeler market as a whole saw a growth of 13.3 percent in FY24, with total volumes reaching 17.97 million units. This growth is attributed to increased income distribution, economic stability, and favorable weather conditions, particularly in rural areas. Honda Motorcycle & Scooter India’s strategic focus on expanding production capacity and introducing new models positions the company well for continued success in the market.
