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Honda bets high on its scooters; plans to make world's largest scooter plant in Gujarat

Snapshot: This decision has come following the sales figures scooter industry has reported in the recent months

Honda Motorcycle and Scooter India (HMSI) has been very aggressive in the two-wheeler industry from some time and it has resulted in Honda dreaming bigger and bigger with every move. The latest move is to make world's largest scooter factory in Sanad, Gujarat. The plan is to roll out 12 lakh units of scooters annually to cater to a market which is now becoming more and more unisexual. Scooters in the recent years have broken the barrier and is being accepted by both the sexes as it has become more stylish over the years. Honda's Activa has been a hit since 2001 - the year it was launched.

Scooters formed 25% of the overall number of two-wheelers sold last financial year. According to a recent report, scooter sales in India have grown up to 29% so far this year. Honda also has 53% of market share in terms of scooter sales. The plant will cost Honda Rs. 1,100 crores which means Honda is taking this segment very seriously and plans to invest hugely in it. This will be Honda's fourth plant in India after having plants in Haryana, Rajasthan and Karnataka.

Confirming the development, Mr. Y. S. Guleria, Vice President, Marketing, HMSI said, "Even as we have more than doubled our scooter capacity in India, we have not been able to match up with the demand. After 13 years of its launch, Activa continues to be on 'waiting' even as competition has multiplied ten times. Even though we raised our production with three new scooters, demand still outstrips our estimates. While scooter production has trebled in the past decade, we still have a backlog of 60,000 scooters that should multiply in the festive months ahead."

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