Honda Activa EV Launching in FY 2025: Production Getting Ready
Honda Motorcycle & Scooter India is on the brink of a major milestone with the impending launch of the Honda Activa EV scooter, set to revolutionize the electric vehicle (EV) segment. With production lines gearing up at their Karnataka facility, Honda is poised to make a significant impact in the EV market by December 2024.
Honda Activa EV Production Expansion
In response to the rising demand for both internal combustion engine and electric vehicles, Honda has strategically added two manufacturing lines at its Gujarat and Karnataka factories. This expansion aims to meet the growing market demand and solidify Honda’s position in the competitive EV landscape.
Gujarat Factory’s Contribution
The third line at Honda’s Gujarat factory is expected to contribute an additional volume of 6.6 lakh units. Furthermore, a dedicated manufacturing line for EVs is slated to become operational in the second half of the financial year 2024-2025, boosting Honda’s total production capacity by approximately 9 lakh units annually.
Growth Outlook
Despite challenges posed by the COVID-19 pandemic, Honda Motorcycle & Scooter India remains optimistic about its growth prospects. The company is targeting 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.
Activa EV Launch Anticipation
With the Activa EV’s launch on the horizon, Honda projects a significant increase in scooter output by 11 percent in the upcoming financial year, with volumes expected to surpass 3 million units. Additionally, motorcycle output is forecasted to reach 2.65 million units, reflecting a remarkable growth of 23 percent.
Market Dynamics
Honda’s entry into the EV space aligns with the evolving landscape of the Indian two-wheeler market. With total volumes reaching 17.97 million units in FY24, experts attribute this growth to factors such as sustained economic expansion and favourable rainfall patterns, particularly in rural areas.
Competitor Landscape and Innovation
As Honda positions itself to lead in the EV segment with the Honda Activa EV, it also emphasizes product upgrades across its portfolio to strengthen its market share. The emergence of new-age players with innovative EV offerings underscores the industry’s need for continuous innovation and adaptation.