HMSI rolls out new Activa-i, targets 100,000 sales in 2013-14

New Delhi, June 12, 2013: Honda Motorcycle & Scooter India (HMSI) has expanded its scooter line-up with a new model called the Activa-i. The new scooter slots in below the existing HET technology-enabled models (Aviator, Activa and Dio) and bears a sticker price of Rs 44,200 (ex-showroom, Delhi), Rs 3,000 lower than the standard Activa, which is billed as a ‘family’ model. The new model will be available for sale across India by end-June.

The unisex Activa-i, which is targeted squarely at the Hero Pleasure scooter and aims for buyers in the 25-30 age group, will initially be produced only at the Manesar plant. Later it will roll out from the Tapukara, Rajasthan plant and by end-2013, when the third production line goes on stream at the recently opened Narsapura, Karnataka plant, will roll out from there too.

The HET-enabled Activa-i is powered by the same four-stroke, forced-air-cooled, single-cylinder, 109.2cc engine as in other Honda scooters. Peak power remains unchanged at 8bhp at 7500rpm.

With the new scooter, HMSI says it has entered the ‘personal compact scooter’ category which contributes almost 25 percent of the automatic scooter sales in India. At present, there is a total backlog of around 100,000 units for HMSI products of which 70,000 is for scooters with the Activa accounting for 55,000 units. The waiting period for the big-selling scooter is 10-15 days with the maximum demand coming from South and West India. HMSI dealerships currently have an inventory of 12 days for the product. HMSI says it hopes to clear the entire 100,000 unit backlog before the start of the festival season this year.

Meanwhile, the Dream Yuga commuter bike is averaging sales of 25,000 units every month. CB Trigger deliveries have begun in May 2013 and 1,000 units have been delivered to dealers. Also, deliveries of the second bike in the ‘Dream’ series – the Dream Neo – have begun in the first week of June 2013.

With the Activa-i, Honda has made its intentions crystal clear -- to dominate the Indian automatic scooter space. The new scooter’s lower pricing and unique appeal opens up a price war in the segment and will undoubtedly help draw new buyers into the Honda fold. The competition has much to worry about.

SHOBHA MATHUR