Honda planning to increase scooter production

  • Jun 24, 2016
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With demand for the Honda Activa scaling new heights, the Japanese two-wheeler giant is planning to increase production at its scooter-only plant in Gujarat

Honda Activa 3G

Scooter sales for Honda is booming and given the rising demand for its ever popular Activa scooter, the Japanese two-wheeler giant is planning to ramp up production. Honda Motorcycle & Scooter India (HMSI) has set itself a target of crossing 3.3 million units sales figure and for this purpose it is focussing its attention at the Gujarat production facility to increase its production. The Gujarat facility of Honda is a scooter-only plant and also the largest of its kind manufacturing unit in the world

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 According to Honda officials they have already started production in its second line at the Gujarat plant which should reduce the backlog from the existing 35,000 units to 28,000 units. Honda Activa sales have boomed in 2016 and it continues to be the highest selling two-wheeler for every month in 2016 thus displacing the Hero Splendor from the top. Such has been the domination of the Honda Activa with respect to sales that the scooter leads Hero Splendor by over 82,000 units with respect to cumulative sales in January-May period. Honda wants to cash in on this positive momentum and expand it sales figure as far as possible

The Japanese two-wheeler giant is the undisputed king of the scooter segment with a 47 per cent market share. It also registered an impressive 25per cent jump in scooter sales last month further cementing its position. Hence the production expansion at its Gujarat production facility is vital for the Japanese two-wheeler giant. It would interesting to see whether the Hero Splendor is able to regain its crown from the Activa or will the automatic scooter continue with domination. 

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