Honda Activa EV production line getting ready at their Karnataka facility
Honda Motorcycle & Scooter India is gearing up for a significant shift in its production line as it prepares to introduce the Activa EV scooter, expected to hit the roads by December 2024. Amid growing demand for both internal combustion engine and electric vehicles, the company has added two manufacturing lines at its Gujarat and Karnataka factories.
The decision to expand production comes after Honda scaled back its plans prior to the implementation of BS6 emission norms, followed by disruptions caused by the COVID-19 pandemic. With the addition of these new lines, Honda aims to cater to the increasing demand and capture a larger market share, especially in the growing EV segment.
The Gujarat factory’s third line is anticipated to contribute an additional volume of 6.6 lakh units, with a dedicated manufacturing line for EVs scheduled to be operational in the second half of the financial year 2024-2025. This move is expected to bolster the company’s total production capacity by approximately 9 lakh units per annum.
Despite challenges posed by the pandemic, Honda Motorcycle & Scooter India remains optimistic about its growth prospects. The company is eyeing a double-digit growth rate of over 15 percent in the fiscal year 2024-2025, aiming to surpass its previous peak volume of 5.9 million units in FY19.
In anticipation of the Activa EV’s launch, Honda is projecting scooter output to grow by 11 percent in the coming financial year, with volumes expected to exceed 3 million units. Additionally, motorcycle output is forecasted to reach 2.65 million units, representing a notable growth of 23 percent.
Honda’s foray into the EV space comes amidst a shifting landscape in the Indian two-wheeler market. With total volumes reaching 17.97 million units in FY24, a growth of 13.3 percent, experts cite factors such as sustained economic growth and favourable rainfall patterns as catalysts for continued traction, particularly in rural areas.
While Honda aims to strengthen its position in the EV segment with the Activa EV, the company is also focusing on product upgrades across its portfolio to further enhance its market share. The increasing competition from new-age players with their EV offerings underscores the need for innovation and adaptation within the industry.
