[TusharK]

India is now Honda's largest 2-wheeler market by volumes. Honda's domestic volumes recently overtook Indonesia's contribution to the global sales, thus elevating India to the top spot.



Honda Motorcycles & Scooter India (HMSI) contributed 32% of Honda's global 2-wheeler sales in the first quarter of the financial year 2017-18. This was fueled by domestic sales which grew by 20% in this period whereas the industry growth was clocked at 9%. Motorcycle sales grew by 20%, thus cementing India as Honda's largest motorcycle market. Meanwhile, Indonesia remains the biggest consumer of Honda scooters.

Honda recently inaugurated its 4th assembly line in Karnataka with an annual production capacity of 6 lakh units. The Narsapura plant in Karnataka now has an installed capacity of 24 lakh units. That makes India the largest production hub for Honda 2-wheelers with a combined capacity of 64 lakh units spread across four manufacturing plants. In comparison, Indonesia only has a production capacity of 58 lakh units.

If you look at the domestic market, the state of Uttar Pradesh is HMSI's largest 2-wheeler market. Tamil Nadu is biggest market for Honda scooters accounting for 44% of all scooter sales with Maharashtra in second place.

Source: ET Auto

[Ashley Nair]

Honda has been milking Indian customers for the last 12 years, selling obsolete models or unreachable middleweights such as CBR 650. They are only interested in selling volumes and don't care to move in tune of the customer aspiration. Their middleweight street retro is rumored to be launched by 2020 and is most likely to be a "Johny come late", with an obscenely high price tag. Besides, when Indian Companies like Bajaj and RE are making significant quality improvements, Honda is going the other way. Hail Honda
- a frustrated Honda fan

[SourabhSuresh]

Originally Posted by Ashley Nair

Honda has been milking Indian customers for the last 12 years, selling obsolete models or unreachable middleweights such as CBR 650. They are only interested in selling volumes and don't care to move in tune of the customer aspiration. Their middleweight street retro is rumored to be launched by 2020 and is most likely to be a "Johny come late", with an obscenely high price tag. Besides, when Indian Companies like Bajaj and RE are making significant quality improvements, Honda is going the other way. Hail Honda
- a frustrated Honda fan

How can a product which is selling in volumes be obsolete or out of tune with customers aspirations? Isn't that contradictory?
Honda is in tune with the market, but not the motorcycle enthusiast market which won't bring in the volumes. Every model of Honda is being continuously upgraded after gauging the market needs religiously. Every QC is followed up in mission mode and made sure it won't happen again.
The recently opened new line in the Kolar plant caters exclusively to scooters and has Poka-Yoke for every mistake that has happened before. Those are significant quality improvements.
A new model which will compete with the RE “elephant” will be launched soon. But yes I do agree that the Honda models line up are on the expensive side and also believe that the market economics will sort that issue out very shortly as its competitors are providing the same quality products at a much cheaper slab.

[jpcoolguy]

And more than 60% of these sales is fueled by the evergreen scooter - Activa, which is selling close to 2.5 Lakh units every month

But, the credit really goes to Honda to understand the market sentiment and keep updating Activa, in order to stay ahead of the competitors.

[AtheK]

I hope this will probably make them get the Honda CBR 250RR to Indian shores. It still amazes me that they stay adamant not to bring the latest one to India, when the CBR 250 did pretty well in India.

[FasterSon]

I am really lost on a solid opinion on Honda!
They did give us cbr150 and 250 although I had bought a r15 before they got it here. The smooth dohc motors representative of Honda were boring if I can put it that way for lack of a proper description. They did give good sub lack rupees bikes like the unicorn and the new hornet looks good. But from a mid range bike enthusiast point of view they have been nothing but disrespectful to Indians. Much like a capable captain just not interested in leading the team passionately.
But they have also done their homework well on us. Internationally, they do not have models with performance for our liking at the price range we are expecting. And they neither give us our customised products like they do in Brazil.
Yamaha India although seems lazy as a company, has given us excellent performance bikes and seems on track again with r3 and if at all a xsr300 comes, will be a roost!
It almost tempts me to shun honda product even if it's for my liking, when and if at all, such a bike comes from them. I am all eyes on the Bajaj triumph tie up and Jawa now. Bye bye honda, a boring scooter maker.

[GTO]

Wonderful news! I keep saying that the next 20 years belong to India and such developments only show the power of our economy . Let's also not forget that India is Suzuki's no.1 market for cars. It's also the only big market where Suzuki is no.1.

Originally Posted by Ashley Nair

Honda has been milking Indian customers for the last 12 years, selling obsolete models or unreachable middleweights such as CBR 650.

Well, they're clearly selling what the market wants. I won't agree with your 'milking Indian customers' statement as no one put a gun on any customer's head. The Indian customer is very price sensitive, especially when it comes to 2-wheelers. If lakhs of them are buying Honda's 2-wheelers every month, it's clear that the mass market sees Honda's products as offering good value.

[Hickstead]

Originally Posted by GTO

Well, they're clearly selling what the market wants. I won't agree with your 'milking Indian customers' statement as no one put a gun on any customer's head. The Indian customer is very price sensitive, especially when it comes to 2-wheelers. If lakhs of them are buying Honda's 2-wheelers every month, it's clear that the mass market sees Honda's products as offering good value.

+1.
We have bought a pre-worshiped activa in 2012 which was already 2 years old at that time with 8k on ODO for 35k. It was a very expensive deal compared to other scooters in the market. Even after 7 years of life, the engine is a refined gem and sounds as if, it is just out of showroom floor.
One of my neighbours is ready to buy this from me for 35k now .

[CrAzY dRiVeR]

Originally Posted by GTO

The Indian customer is very price sensitive, especially when it comes to 2-wheelers.

Agree with all the statements, except this one. Indian customer is not price sensitive, but value sensitive - even in this two wheeler segment.

Take the Activa for example. It's nowhere close to being the cheapest in the segment. Infact, it costs as much as some 125cc scooters available in the market. If you purely go by product quality - they fare pretty poor for the price. Why does it still sell if the market was price sensitive?

Same goes for the Splendor, which is not the cheapest in the market. Several Bajaj and TVS, and even Hero models undercut it, but still it continues to outsell all others. Infact, most of the "cheap" models failed in the market.

More than the price - they see the value of the product in a combined package - Product + perceived reliability + service network + perceived public image are all seen as a package even though they may not rationally sit and evaluate the same like we do in Team-Bhp. Activa has become legendary as a proven workhorse that is dependable - a big sub brand in itself, bigger than Honda Two wheelers. It's only going to get better and better for Honda, because I feel Hero is weakening and the rural market is starting to mature from motorcycles to the more versatile scooters - specially the Activa.

And this is not very different from the car market either. Activa enjoys a position similar to the Toyota Innova, where if we see purely based on the price and competition - one can argue that the company is milking the market - whereas for the mass market buying it - they have their strong reasons to stick to the product as it still gives them the overall experience that they expect.

[FasterSon]

No doubt Honda are the scooter champions. They sell more scooters in Indonesia than in India!
Activa seems to have touched a mark that it is considered wrong or foolish to go against. More like superstition! No...superstition needs the matter at concern to be false, but this product is true. More like 'common sense'! They did the same with Hero Honda splendor. So it's not new to them.

But why is that they overlook the motorcycling enthusiasts so glaringly?! Are they not confident on the issue?
All the research and they come up with Navi?! Chrome and Adventure editions! No offence to anyone but personally I thought it was a sick joke on me, at a time wen I was desperately looking for a highway bike!
Navi sales falling towards 2 digits per month, in a country of more than a billion!

[Ashley Nair]

How can a product which is selling in volumes be obsolete or out of tune with customers aspirations? Isn't that contradictory?

Well, they're clearly selling what the market wants. I won't agree with your 'milking Indian customers' statement as no one put a gun on any customer's head.

If that be so, then you agree that RE products are blooming with quality and satisfy customer aspirations?
My friend, both RE and Honda (and every other manufacturer) are having their own fanbase and they buy those products, of course for their positives, but not feeling satisfied that those are the very products that they aspire ( read "drool for"). For example, Honda relaunched CB Unicorn 150 due to the fact that Unicorn 160 didn't go well with their customers. Still, even after a relaunch (after completing 12 years of life with the only change being graphics and a cosmetic revision of fairing) the damned thing is not provided even with an engine kill switch. It may be noted that every other bike in the segment, of the same price and even less, are having an engine kill switch. It is the bounden duty of manufacturers to give their customers the best in the segment, at least at par with other manufacturers, since they are taking our hard earned money. The Indian Honda customer is constrained to buy such products out of "necessity" since no other options are provided by Honda. I said " milking" because Honda, which once offered class leading products, is misusing their goodwill and exploiting customers by offering products in 3rd world countries which do not sell in developed ones

[GTO]

Originally Posted by Ashley Nair

If that be so, then you agree that RE products are blooming with quality and satisfy customer aspirations?

Not 'quality, but they definitely satisfy 'aspirations'. Royal Enfields, Mahindra Thars, Harley-Davidsons etc. have built up an enviable image which lends them a fan following & success, despite their obvious quality issues. From the POV of the customer, he is compromising on quality, but is getting what he wants in other areas. Ask me as an owner of a 21-year old Jeep. And if I didn't have the Classic, I'd pick up a Mahindra Thar tomorrow.

As Crazy Driver posted, the customer clearly sees 'value' in the product. Value isn't always about outright quality or even reliability (else Mercedes, BMW & Audi would have shut shop by now).

[payeng]

Originally Posted by GTO

Value isn't always about outright quality or even reliability (else Mercedes, BMW & Audi would have shut shop by now).

Absolutely Right.

In case of Honda, the "Value" that the Indian consumer see is.. "Peace of Mind", and the Activa seems to provide the MOST PEACE.

[slicvic]

Honda is also number 2 in the Indian market.
Ahead of them is a brand they helped create - Hero

That's something to be proud about too

[narayans80]

Honda saw the potential in the unisex scooter with Kinetic Honda from the early 90s. It sold in decent numbers despite its niggles.

TVS had the Scooty which didn't appeal to the other half of the audience. TVS didn't have a competitor ready until Wego in 2010. Bajaj didn't bother to respond. Suzuki had the first competitor in the form of Acccess 125 in 2006.

So till the time Honda went on its own, put the foot down and establish its market with the Activa a full 5 years, there was no response. Then why complain about Honda, when the others were caught napping for a full decade and change.