[TusharK]

India is no longer Honda's largest largest 2-wheeler market. Indonesia is now the biggest market for the Japanese brand.



Honda Motorcycle & Scooter India (HMSI) sold 4.7 million units in FY2020, while the brand's Indonesian subsidiary clocked 4.85 million units. HMSI's sales were down to FY2017 levels, when the company had sold 4.72 million units.

According to media reports, the rise in insurance costs, new regulations and price hikes have adversely affected demand for 2-wheelers.

Despite the demand for 2-wheelers being weak for the past 2 consecutive years, Honda remains the top scooter maker in India. It has a market share of 57%. Scooters account for 67% of all HMSI sales.

Source

Link to Team-BHP News

[CrAzY dRiVeR]

Thanks for sharing Tushar. It is quite easy to forget that India is actually the biggest two-wheeler market for Honda. Or at least, it used to be!

From FY2019 to FY2020 - the overall two-wheeler industry saw an overall reduction in sales by 18%, whereas Honda witnessed a 14.7% drop in sales. However, I guess the bigger problem is that HMSI is a one-trick pony! 55% of these numbers came from the Activa alone - and the only other two relatively successful products in the lineup is the CB Shine with ~20% sales and the Dio with ~10% sales. HMSI simply has failed to succeed with other brands - and even had to revert to discontinued products after new offerings failed, as was the case with the CB Unicorn.

Not to mention - all of these products are running with minor updates for the last decade! Activa, Activa 125, Dio, Unicorn, Shine and SP125 - that completes the BS6 lineup. Could as well be 2010!

Whereas the Indonesia lineup is so desirable and refreshing! Sure, they get a collection of step-throughs as the market sells a lot of them - but so many interesting machines as well. From the CRF150L to the famous CRF250L dual-sports, from CBR 150R to CBR 250RR, from the timeless Honda Cub to the modern lineup of Forza, PCX and the jaw-dropping ADV 150 - the Indonesia product range is just no comparison to the lineup offered in the Indian market.

Wake up call for HMSI to pull up their socks and treat the Indian market like the top runner it is!

[Thermodynamics]

It is an obvious effect of economic slowdown, motorcycle market in general has slowed down. I hope, post Covid, there would be a spur in two-wheeler demand. Indonesia is a good market but IMO the market scope in India is way bigger. I wish HMSI stops giving step-motherly treatment.

Originally Posted by TusharK

India is no longer Honda's largest largest 2-wheeler market. HMSI's sales were down to FY2017 levels

Note the 2017. End of 2016 marked the end of liquidity of middle class and lower middle class. It was ruthless on micro economy. It never recovered from there.

Since we are comparing Indonesia in this thread, here are some facts

Per capita GDP
India : rank 139, 2171 USD
Indonesia : rank 109, 4160 USD

Per capita GDP by PPP
India : Rank 116, 9027 USD
Indonesia: Rank 93, 14841 USD

The above data means the Indonesians are richer and therefore can afford more. Now, lets focus on vehicles.

VAT/GST
India : 28% super imposed by 12% road tax (Bengaluru)
Indonesia: flat 10%

Fuel tax
India : Anywhere of the order of 100% depending on the mood of FM and of course election dates.
Indonesia : flat 25%

The above data means, Indonesians are not just richer but also have low taxes. The tax implication remains low at the time of buying keeping the costs low.


PS: Wonder our rationale that makes middle class and lower middle class commuter to be taxed as luxury.

[a4anurag]

It may be a low year so far for Honda in India but I still feel that the figures will bounce back as lockdown lifts and people start purchasing two-wheelers for daily commute as opposed to public transport.

There will be a hike in number all across the board in the coming months. It may not reach peak numbers as it was prior to lockdown but it won't be dismal either.

[NiInJa]

Economy might be one reason, but the other reason is that Honda has always priced their scooters/bikes a little higher compared to the competition, or the competition has better equipment. That is the reason why they have been able to sell only the Activa brand all these years (which I feel is a bit overrated). They couldn't capitalize the 125cc segment, its ruled by Suzuki and TVS. The 150-160cc bike segment too was once ruled by Bajaj but look at how Suzuki, Yamaha and TVS have got some great bikes, while Honda launched the same old Unicorn with 160cc engine along with other bikes like CB Hornet etc which use an old platform/chassis (compared to Pulsar NS series). They were simply not able to move ahead with time.

[Carpainter]

This is mainly due to the downturn in the economy but having said that, Honda should have done better. They are focused too much on Activa product line and mostly ignore the bike segment. They discontinued the CBR150 which was a youngster favourite and a fully faired bike in that segment. They just don't have enough portfolio to sell in good numbers.

[jasjotbains]

Slightly OT, but does Honda have any app to track the service records/schedules of its two wheelers, similar to the Hyundai care app? My Honda service center is not a big fan of giving printed bills after service and I just want to check whether my scooter service is reflecting in Honda records for any warranty issues later on