Honda inches closer to market leadership in India, driven by a strong product lineup and strategic expansion.
28 Jan 2025 | 5271 Views | By Kiran Murali and Ketan Thakkar
Minoru Kato, the head of the Motorcycle business at Honda Motor Company, says the Japanese two-wheeler major is well within reach of “the largest market share in India."
Kato, who was earlier the president of Indian operations, says the country is the largest two-wheeler market in the world, and ...
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Minoru Kato, the head of the Motorcycle business at Honda Motor Company, says the Japanese two-wheeler major is well within reach of “the largest market share in India."
Kato, who was earlier the president of Indian operations, says the country is the largest two-wheeler market in the world, and Honda has been building and enhancing “an attractive product lineup” that accommodates customers' diverse needs.
“The lineup includes the Activa, the best-selling scooter for commuting and city riding; the Dio, a scooter targeted at young people; the Shine, a light motorcycle used for a wide range of purposes mainly in rural areas; and the SP, a high-value-added light motorcycle model. Additionally, by strengthening sales measures such as enhancement of the sales network and services, Honda has steadily increased sales volume to the point where the largest market share in India is within reach,” he told media persons in Japan on Tuesday.
The revival in scooter sales in recent years and the incremental volumes by Shine 100 and some premium models have helped Honda Motorcycle & Scooter India to close the gap with Hero MotoCorp, which has been sitting on its lowest-ever market share.
At the end of December 2024, Honda Motorcycle & Scooter India trailed its closest rival, Hero MotoCorp, and its erstwhile partner by less than 2 lakh units. This gap was almost 7 lakh units at the same time in FY-24.
Hero MotoCorp had a market share of 28.80% in the first nine months of the current financial year, whereas Honda Motorcycle was at 27.52%, with just 128 basis points separating the two in April to December of FY-25.
Moreover, to further expand sales, Honda will pursue various initiatives to strengthen its business in India, including the automation of production plants and active cultivation and utilization of local suppliers – the top management informed.
In addition, Honda will expand its motorcycle business by implementing efficient product strategies globally, such as exporting high-value, highly competitive products nurtured in India to the South American market, where customer needs are like those of India.
With an eye on garnering a a 50% share by the end of the decade, up from its current 40% share, Kato said future growth will be driven by the global South, which India and the other emerging markets lead.
“Honda is expecting to see a further increase in motorcycle demand in ASEAN countries, Pakistan, Bangladesh, and Brazil due to an increase in the working population that overlaps with the motorcycle user population. Seizing this opportunity, Honda will further solidify its motorcycle business by fully leveraging its strengths in products, sales, service, procurement, and production operations on a global basis,” added Kato.