ZigOpinion: Honda Activa e: A Case Of Too Little, Too Late?

Honda took its sweet time in coming up with an electric Activa, called the Activa e:. But was the wait worth it? We got to sample the electric scooter, and knowing more about its dynamics as well as Honda's Battery As A Service (BAAS) pricing structure, it really made us wonder, does it even make sense for the quintessential Activa buyer? There are a lot of aspects that seem at odds with the very essence of the Activa. We explore some of the biggest pain points:

Practicality Compromised With Swappable Battery System

Sure, a swappable battery system makes great sense as it eliminates downtime, you can simply change the battery rather than wait for it to charge, which might take anywhere between half hour to a couple of hours.  Honda says swapping takes less than 1 min, we even had a go at it and managed to do it in just 36 seconds! But having 2 battery packs severely reduces the underseat storage space. The Activa is meant to be a practical runabout, and the Activa e: compromises on that very essence. As a result, the user is forced to rely on the floorboard and cubbyholes - two mounted on the apron with a capacity of 0.5 litres each and are open - to keep their knick-knacks. In our opinion, swappable batteries make sense only for electric motorcycles, which don't have to grapple with the lack of utility space in the first place. Honda does give the option of a lockable glovebox on the apron, but that’s a 2,450-rupee accessory.

Pricey, Closed Loop Ecosystem

Unlike Hero Vida V2, Honda is not giving customers the option to charge at home. Having to rely solely on a swappable network doesn't make sense for buyers who use the scooter occasionally. Honda has a subscription model, which one has to pay for (every month) to use the swappable battery system. They have two plans (Basic and Advance). The Basic one is a 35kWh/month (40km per day) plan for Rs 1,999 (per month +GST). The Advance one is an 87kWh/month (100km per day) plan for Rs 3,599 (per month +GST). Choosing the Advance plan means spending close to Rs 50,000 per year. To give you a perspective, the Hero HF100 comes at an ex-showroom price of 59,018!

The subscription fee will be a recurring expense that's over and above the scooter, which itself is priced at a premium at Rs 1,17,000 up to Rs 1,51,600 (both prices ex-showroom, Bangalore). Apart from some hardcore scooter commuters, most scooter users cover only an average of about 20-30km a day, excluding weekends. So, with irregular use, you still end up paying the same amount. What Honda should've done is charge the user only on a usage basis, either the distance they cover or units of electricity they consume. 

Conclusion

Instead of designing and developing 2 scooters - one with better performance but with swappable batteries and the other with lower performance with fixed battery (read Honda QC1) - Honda should've simply been more straightforward and simple with its product approach. Honda's convoluted development is reflecting in their cautious approach as well - it has to invest heavily on swapping stations and only then bring scooters in the respective cities, which is why it is available only in 3 cities (Bangalore, Mumbai and Delhi) right now, severely limiting its sales potential. It is evident that Honda is commanding a premium for its electric scooters to recoup the heavy investment made on the swappable battery infrastructure as well as designing and developing two scooters at the same time.

If Honda made one scooter with a fixed battery pack and good performance, it would've stood a much better chance at competing well in the market. Honda could’ve simply varied the battery capacities and perhaps some features to give the e-scooter at a wider price range so that it suits customers with varying budgets. The Activa is a household name that’s practically available in every part of the country. Till date, it is the highest-selling scooter, consistently racking up lakhs of sales owing to its simplicity and practicality. Now does its greener avatar really deserve the famed nameplate? What with its limited availability and lack of practicality? You be the judge.