Honda Motorcycle and Scooter India (HMSI) plans to ramp up the production of the Activa owing to its huge demand. The scooter has met the sales target of the company and in fact, now it is grappling with excess demand.
From the first quarter of this fiscal to the second quarter, Honda's daily scooter production has grown by 15-20 per cent. The company had to eventually keep increasing their production of scooters as the enquiries went up by 30 per cent from April to July. Sales also increased by 33 per cent and with the upcoming festive season, the demand is only expected to increase.
As a measure to tackle the rise in demand, HMSI has hiked the production of the Activa at its third plant in Bangalore. Instead of the 1.7 lakh to 1.8 lakh units produced in a month, now the company will manufacture nearly two lakh units per month to meet the demand.
The Activa was launched for the Indian market in 2001 and has tasted a fair bit of success ever since then. No wonder it commands a waiting period of anywhere between 2-5 months. The Activa has outsold the country's best-selling Hero Splendor motorcycle three times in the last 11 months and has emerged as the winner not just in the scooter segment, but in the entire two-wheeler industry.
Source: ET