Affordability has been hit within the price-sensitive class, which led to withdrawal by many entry-level patrons, particularly these within the rural and semi-urban areas, mentioned Atsushi Ogata, president and CEO of Honda Motorbike & Scooter India (HMSI)
“Even should you have a look at Activa scooter, there was an enormous hole in worth of the automobile immediately and what it was round 5 years again,” the top of HMSI mentioned, including that some restoration is being observed now.
After hitting a file excessive of 21.2 million models in 2018-19, the two-wheeler business noticed large reversals, with volumes shrinking to 13.4 million models in 2021-22. Whereas there was progress in numbers this 12 months, the ultimate figures would nonetheless be far wanting the business highs. Ogata mentioned the business can begin creating new highs in gross sales solely round 2028-29.
He mentioned HMSI is saddled with over-capacity because it arrange annual peak manufacturing of 5.8 million models in India, although it may promote solely round 3.9 million models in 2021-22.
“The pandemic got here in like an accident for the business and its well being, and its timing could not have been worse because the migration from BS4 to BS6 merchandise additionally occurred throughout the identical time. The subsequent accident was the spike in commodity costs,” he mentioned, mentioning causes that noticed automobile costs go up.
Honda additionally plans to herald a 100cc entry bike by March this 12 months, as it really works to get greater volumes. This may compete in opposition to arch rival Hero Moto, which dominates the entry market.