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Old 28th April 2017, 11:14   #1
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Default Honda Activa - 1.5 crore units produced till date

Honda two-wheelers has rolled out the 1,50,00,000th unit of the Activa gearless scooter from its manufacturing facility in Gujarat. This has made Activa the first automatic scooter in the country to reach the said production milestone.

In March 2017, Honda dispatched 2,39,339 units of the Activa in India. It is currently the market leader in the two-wheeler segment, ahead of popular motorcycles like the Hero Splendor, HF Deluxe and Passion. Honda claims that the Activa is currently the largest selling two-wheeler not only in India but across the world as well.

The Activa brand was introduced in India in 2001. During the first year, the automatic scooter managed to clock 55,000 unit sales. It took three years to become the country's best-selling automatic scooter. During the fiscal year 2012-13, the Honda Activa crossed the 10 lakh sales milestone. The next four years saw Activa's sales more than doubling as the scooter clocked 27.59 lakh unit sales during the last fiscal, i.e. 2016-17. During this period, the Activa also dethroned the Hero Splendor as the best-selling two-wheeler of the country.

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Old 28th April 2017, 11:58   #2
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Default Re: Honda Activa - 1.5 crore units produced till date

The only things that will survive in India after the nuclear holocaust will be a Toyota Fortuner, a Honda Activa and cockroaches (probably also evolved from Japanese ones)

It can be said again and again, nothing comes close to Japanese reliability, durability and dependability. IMHO.
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Old 28th April 2017, 14:05   #3
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Default Re: Honda Activa - 1.5 crore units produced till date

Now this piece of news is surely going cause some major heart burns at Bajaj Auto. The scooter market was primarily theirs, before they decided to quit.

Although they made a name for themselves in Motorcycle market with Pulsar brand, and later on with stake in KTM, but the sheer revenue numbers they lost with this decision is staggering.

A quick back of the hand calculation shows: 1.5 crore Activas spread over a period of 17 years totals to 825Bn INR (@55K per scooter). Bajaj quit scooter market in 2009, that means Honda earned 388Bn INR in 2009-17. Bajaj could've had a share in this sales volume. Even a moderate estimate of 40% comes to 155Bn INR, and this is not considering sales for other scooter makers. 155Bn INR spread over 8 years is close to 20Bn INR per year. Their current revenue is 227Bn INR. Which means they could have easily boosted their top line by 10% and that's the minimum I'm talking about.

It's a nature of business to win some and lose some. This is not losing "Some" though. IIRC, Mckinsey were the advisors on this strategy and they couldn't have more wrong.

P.S. there are rumors of reviving the chetak brand, but I think that'll remain a rumor for a while.

Last edited by LordSharan : 28th April 2017 at 14:06.
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Old 28th April 2017, 14:53   #4
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Default Re: Honda Activa - 1.5 crore units produced till date

Mind-boggling success, whichever way you look at it. Hat's off to Honda & the Activa. The guys must be having quite a party this weekend.

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Originally Posted by dZired View Post
In March 2017, Honda dispatched 2,39,339 units of the Activa in India. It is currently the market leader in the two-wheeler segment, ahead of popular motorcycles like the Hero Splendor, HF Deluxe and Passion.
I guess this was also the first financial year where the Activa displaced the Splendor from the top spot.

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The Activa brand was introduced in India in 2001
Noob question: How many generation changes has the Activa seen? For instance, with cars, we have all-new generations every 5 - 7 years.

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Originally Posted by LordSharan View Post
Now this piece of news is surely going cause some major heart burns at Bajaj Auto. The scooter market was primarily theirs, before they decided to quit.
They're behaving like idiots, if you ask me. The only mistake is the one you refuse to correct. Why doesn't Bajaj get back onto the Scooter bandwagon? The segment so obviously has volumes.

Quote:
A quick back of the hand calculation shows: 1.5 crore Activas spread over a period of 17 years totals to 825Bn INR (@55K per scooter)
Thanks! Awesome post. Here are some numbers I'd shared on an earlier Activa thread:

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Lets round off the ex-showroom price of an Activa at 50k. That's nearly 1200 crore rupees in monthly turnover from a 2-wheeler .

We're always looking at car sales closely and applaud the Alto (India's best selling car). In comparison to the Activa, the Alto's monthly turnover is half that @ Rs. 600 crores 'only' (20,000 units at an average selling price of 3 lakh).
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Old 28th April 2017, 15:34   #5
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Default Re: Honda Activa - 1.5 crore units produced till date

Quite a defining product, isn't it!

Looks like Honda took every possible learning from the Kinetic Honda and channeled it into the Activa.

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Originally Posted by GTO View Post
Noob question: How many generation changes has the Activa seen? For instance, with cars, we have all-new generations every 5 - 7 years.
On the 4th generation now; hence the moniker, Activa 4G.
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Old 29th April 2017, 00:10   #6
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Originally Posted by GTO View Post
They're behaving like idiots, if you ask me. The only mistake is the one you refuse to correct. Why doesn't Bajaj get back onto the Scooter bandwagon?

For the Simple Reason that in India only the Very Brave or Very Stupid would buy any scooter but an Activa. Maybe at best the TVS Jupiter, a Hero scooter or maybe the Suzuki Access or even a Yamaha.

"Why on Earth Something Else if it has to be a Scooter?

Proof : Even Vespa / Aprilia haven't been able to replicate the mass appeal. Compare this to the 1.5 crore behemoth. Don't even mention the Mahindra's here.

Last edited by payeng : 29th April 2017 at 00:14.
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Old 29th April 2017, 00:41   #7
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Default Re: Honda Activa - 1.5 crore units produced till date

I still own an Activa from the first lot that was sold in Goa. Not really spent much other than 2 resprays. The 2nd one included lot of other small things too. Spent a total of 12K and it was as good as new.
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Old 29th April 2017, 16:34   #8
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Default Re: Honda Activa - 1.5 crore units produced till date

Quote:
Originally Posted by payeng View Post
For the Simple Reason that in India only the Very Brave or Very Stupid would buy any scooter but an Activa. Maybe at best the TVS Jupiter, a Hero scooter or maybe the Suzuki Access or even a Yamaha.
Just my 2 cents. When you are an established player in the market it makes no sense to completely ignore the pie because you're afraid you will only get a small piece of it. I see a fair number of Wegos, Jupiters, Maestros on road. All of them follow the same old formula and it's often difficult to distinguish them. It wouldn't hurt Bajaj too badly to give it a try.

There so many people who walk into their showrooms everyday, so many brand loyalists (from Chetaks to Pulsars) and yet when these people need a scooter they have to go elsewhere.

Last edited by CarCynic : 29th April 2017 at 16:37. Reason: Added content
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Old 29th April 2017, 21:32   #9
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Default Re: Honda Activa - 1.5 crore units produced till date

The Volkswagen Beetle is the car that broke all production records and was produced in the maximum numbers viz. nearly 25 million in all incl. Germany, Brazil and Mexico, plus their assembly plants elsewhere.

The Activa seems headed for this crown in the two wheeler segment. Almost every house in any town, city or Metro in our country owns an Activa. Some family member/s has/have to have one.

But the woe of people like me who love classics and vintages is that, as these are so common now, it will be difficult for the oldest 2001 Activa to acquire a classic two wheeler tag, even by 2050 A.D. That's just my figment of imagination.
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Old 1st May 2017, 11:13   #10
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Originally Posted by CarCynic View Post
Just my 2 cents. When you are an established player in the market it makes no sense to completely ignore the pie because you're afraid you will only get a small piece of it.

I see a fair number of Wegos, Jupiters, Maestros on road. All of them follow the same old formula and it's often difficult to distinguish them. It wouldn't hurt Bajaj too badly to give it a try.

There so many people who walk into their showrooms everyday, so many brand loyalists (from Chetaks to Pulsars) and yet when these people need a scooter they have to go elsewhere.

Remember Bajaj Kristal? It was there (and out too) even before the Wegos, Jupiters and Maestros.
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Old 1st May 2017, 11:24   #11
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Default Re: Honda Activa - 1.5 crore units produced till date

Quote:
Originally Posted by payeng View Post
Remember Bajaj Kristal? It was there (and out too) even before the Wegos, Jupiters and Maestros.
He probably meant failure of BAL to foresee the potential for scooter market by focusing too much with motorcycles & may be if BAL had stayed with scooters they could've got a respectable piece in the pie.
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Old 1st May 2017, 12:03   #12
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He probably meant failure of BAL to foresee the potential for scooter market by focusing too much with motorcycles & may be if BAL had stayed with scooters they could've got a respectable piece in the pie.
In many cases Business a game of good fortune/luck. There can be many if's and but's.

But honestly, I wouldn't buy a scooter but a Honda (and have eventually bought) in India. And boy am I satisfied with my decision.

Last edited by payeng : 1st May 2017 at 12:07.
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Old 1st May 2017, 12:56   #13
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Default Re: Honda Activa - 1.5 crore units produced till date

Whoa! That's quite a big mile stone for the Activa. I believe it's the fuss free nature of the scooter and its tolerance towards abuse that makes it so popular. We have two gen 1 Activas, bought in 2004/05 and they are still going strong. Nothing, I mean really nothing breaks the Activa apart; and that is their main selling point. Simply superb of Honda to make sure that the quality is excellent from day 1 till date.
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Old 1st May 2017, 20:12   #14
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Quote:
Originally Posted by GTO View Post
Noob question: How many generation changes has the Activa seen? For instance, with cars, we have all-new generations every 5 - 7 years.
2000-2008 First Gen Activa in 102cc

2009-2012 Second Gen Activa in 110cc

2013 A lighter version of the 110cc model named Activa i.

2014 Launch of Activa 125cc.

2015 Activa 3G (3rd generation facelift for the 110cc model)

2017 Activa 4G (BS IV engine model aka 4th generation)


The above estimation of revenue by @LordSharan is partially incomplete because underneath the bodywork, the Navi, Dio and I suspect even the Aviator is an Activa itself. And that's not all, the Hero scooters on sale are(or were, don't know if they still sell the Maestro and Pleasure) also Activas underneath the bodywork. Hero pays HMSI royalties for every scooter(amongst other Honda motorcycles they still sell).

Hero has been trying to end the royalty payments to Honda since 2014 but everytime they decide to pull the plug on the existing Honda motorcycles and scooters they are rebadging, the demand for those products would increase. Its funny when you read the following 3 news articles from 2014, 2015 and Sept 2016 where Hero keeps saying they will end Honda royalty payments "soon".

2014: Title says "Hero to stop paying fixed royalty to Honda in boost to profits"
http://www.livemint.com/Companies/pl...-to-profi.html

2015: Title says "Rise in Hero royalty pay to Honda"
http://www.business-standard.com/art...0400835_1.html

2016: Title says "Hero Motocorp to settle royalty dues with Honda soon"
http://www.autocarindia.com/auto-new...on-403053.aspx

Wonder if they'll finally finish the deal in 2017

Last edited by Nithesh_M : 1st May 2017 at 20:22.
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