It has been a bumpy ride for India’s automobile companies over the last one year, as rising cost of ownership and the overall subdued economic sentiments have dented growth. The slowdown has been visible across passenger vehicles, two-wheelers as well as commercial vehicles. Honda Motorcycle and Scooter India (HMSI), India’s largest scooter maker, is not seeing revival signs just yet in the two-wheeler market, since the upcoming shift to BS-VI emission norms will lead to some uncertainty on consumer sentiments.
Over the last one year, mandatory long-term insurance requirement and enhanced safety norms has already pushed up prices. Prices will further go up as companies launch new vehicles compliant to BS-VI emission norms that will be effective from April 1.
“From an industry point of view, because the price points are changing anywhere in double digits, in terms of percentage from existing price point, this will definitely have some impact. It is also happening when the overall sentiments of the market are also low. So, in the near future we don’t see any positive revival coming in the market,” Yadvinder Singh Guleria, senior vice-president, sales and marketing at HMSI, said on Wednesday.
According to data from the Society of Indian Automobile Manufacturers, total two-wheeler industry sales declined around 14 per cent in calendar year 2019 to 18.57 million units. HMSI was no exception to fewer customers buying new vehicles.
Given that the country’s economic growth has slowed sharply and consumption demand has taken a hit, it is still uncertain how customers will respond to prices further going up with the new BS-VI vehicles hitting the market.
Guleria said that Honda is trying to make it more affordable for consumers to shift to BS-VI technology through attractive finance schemes, but whether it would be good enough to motivate people only time will tell.
“For the next two quarters, we are not that upbeat because there is a transition that is going to happen; from April 1 no BS-IV vehicles will be available and BS-VI availability will also not be across 100 per cent network and not all models will be in BS-VI on April 1. There will be some time lag and that will also shift the demand,” he said.
HMSI on Wednesday launched the all new BS-VI compliant model of the Activa scooter. The standard variant of the new Activa is priced at Rs 63,912, ex-showroom Delhi, while the deluxe variant will cost Rs 65,412.
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Activa has been the largest selling scooter in India for a long time, with Honda selling more than two crore units since launch.
The Activa 6G will be the third BS-VI emission compliant product to rollout from HMSI’s stable. Last year, it had launched the BS-VI Activa 125 cc and the SP125 motorcycle. So far, over 75,000 units of the BS-VI vehicles have been sold, said company officials.
The new Activa 6G will start reaching dealerships towards the end of the months and deliveries should begin from February.
The new Activa is powered by 110 cc engine with a programmed fuel injection technology; the company claims it will provide 10 per cent more mileage. It also comes with telescopic suspension, engine start/stop switch and integrated dual function switch for accessing the 18 liter under-seat storage as well as opening the external fuel lid, among other things.
