Honda launches new Activa to stem share loss; priced at Rs 44,200

NEW DELHI: Honda Motor Company's Indian subsidiary rolled out its most affordable scooter model in a bid to consolidate its leadership position in the domestic scooter market, which is being challenged of late by a few Japanese and Indian two-wheeler makers. Its fully-owned local subsidiary, Honda Motorcycle and Scooter India(HMSI) introduced Activa-I on Wednesday, priced at Rs 44,200 (ex-showroom Delhi). 

Powered by a 110 cc engine, this gearless scooter will be sold across the country by June end. Honda also sells three scooter models —Dio, Activa and Aviator — all powered by the same 110 cc engine and available at prices ranging between Rs 44,718 and Rs 53,547 (exshowroom Delhi). Honda has been losing scooter market share to players like Hero, Suzukiand Yamaha, which have introduced new models in past few months. Its market share has fallen 10% in the past few years to an all-time low of 50% at the end of March. 

HMSI president and CEO Keita Muramatsu said, "Today we have entered the personal compact segment with Activa-I, which would increase our penetration in the urban markets. We have been facing production constrains, which principally led to decrease in our market share. We aim to recover with our third plant coming up in Bangalore." 

Muramatsu also shared the company's plans to develop a new two-wheeler in India, which could debut within a year, as part of a plan to achieve leadership in two-wheeler market.