The company has expanded its production lines in its factories in Gujarat and Karnataka to accommodate the increasing demand for internal combustion engine vehicles and electric vehicles, respectively, as exclusively revealed to Autocar India.
We exclusively learn to Autocar India that the corporation has expanded production at its factories in Gujarat and Karnataka to accommodate the increasing demand for internal combustion engine vehicles and electric vehicle production, respectively.
The third line at the Gujarat factory is likely to bring in additional volumes of 6.6 lakh units. A dedicated manufacturing line for electric vehicles will come up in FY25, as the company looks to begin production of electric vehicles in the second half of this financial year. The cumulative incremental capacity lined up is about 9 lakh units per annum. Autocar India had exclusively reported 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.
In FY25, Honda Motorcycle & Scooter India aims to increase by double digits, or more than 15%. With the market slowly rising back to its previous highs, this will be the fourth year in a row that it has grown.
The company hopes to reach its earlier peak of 5.9 million units in FY19 by targeting a volume of above 5.75 million units in FY25.
The company expects a 23% increase in motorcycle output to 2.65 million units and an 11% increase in scooter output to over 3 million units in the upcoming fiscal year.
Honda Motorcycle & Scooter India reported a 13% increase in domestic sales during the 23–24 fiscal year, with volumes of over 4.5 million units and a 25% market share in the two-wheeler industry overall.
Since the market is once again experiencing robust double-digit growth and even the rural markets are returning, new capacity is being added. The market is ready for yet another year of double-digit growth due to the expanding economy and the news of a typical monsoon.
In FY24, the firm sold over 2.5 million scooters, accounting for 43% of the market. However, as new companies gained market share with their electric vehicle offerings, the company lost ground, about 250 basis points. However, the business sold approximately 2 million motorcycles in the sector, increasing its market share to 17% by 150 basis points, driven mostly by the new Shine 100 cc motorcycle.
According to sources, HMSI, which plans to launch its EV scooter in the second half of this fiscal year, will depend on product improvements to increase its market share.
There was no response to an email requesting an official statement from Honda Motorcycle & Scooter India.
By the end of FY24, the Indian two-wheeler market had grown by 13.3% to a total volume of 17.97 million units.
According to experts, there is a more equitable distribution of income with continuous economic growth combined with increased demand, and the announcement of a normal rainfall is good news for the two-wheeler sector, which has begun to see further expansion from rural areas.
