Rumour: Honda entering India All Terrain Vehicle (ATV) market

India is growing steadily and this growth has led to the rapid industrialization of many sectors while also boosting the leisure industry comprising of hospitality and off-road enthusiast sectors. Also, the farm sectors' industrialization has led to the fledgling all terrain vehicle (ATV) industry marking its presence in India through industry leader Polaris, an American company. Also, a range of other Chinese companies have tied up with Indian partners/distributors to market, sell and service ATVs.

Note: Image of the Honda ATV used in this report is illustrative in nature. 

Brands such as Nebula, Harison and Adventure Wheels are a few of the smaller names operating in the Indian ATV space. A large number of direct Chinese imports also exist in India. TheEconomicTimes reports that the Japanese auto giant Honda, whose interests range from cars to airplanes, is all set to enter the ATV market in India. Honda is the second largest ATV maker in the world, next only to Polaris. Honda's rumoured entry into the Indian ATV segment will dramatically increase the number of branded choices for the prospective ATV buyer. 

Honda's entry into the ATV segment of India comes with the added advantage of the Japanese company having a well oiled set up in India, from manufacturing to distribution. Notably, Honda sells cars, motorcycles and generator sets in India, with each business having its separate set of dealers. A similar approach is likely for the ATV business as well. Honda also has full fledged manufacturing facilities for cars, motorcycles and power generator sets in India.

While initial sales of Honda ATVs could commence through the completely built unit (CBU) import route given the low volumes in the ATV sector, CKD/full production of these off road vehicles is likely to happen in the years to come as demand grows. Polaris is also said to be exploring the option of setting up assembly/manufacturing operations in India, in association with the Eicher Group, an Indian company known for its commercial vehicles and Royal Enfield range of retro motorcycles.