Honda is gearing up for significant developments in its production lines to meet the growing demand for both ICE and EVs
With the addition of new manufacturing lines at its Gujarat and Karnataka factories, the company aims to enhance its capacity and cater to the evolving automotive market.
Expansion Plans and Production Schedule
Expansion at Gujarat and Karnataka Factories
Honda has strategically added two manufacturing lines at its Gujarat and Karnataka facilities to accommodate the production of ICE and EV vehicles. The commencement of manufacturing for the upcoming Activa EV scooter is scheduled for December 2024 at the Karnataka plant, marking a significant milestone in Honda’s EV journey.
Projected Output and Capacity Increase
The third production line at the Gujarat factory is expected to contribute an additional volume of 6.6 lakh units, with plans for a dedicated EV manufacturing line in the fiscal year 2025. This cumulative increase in capacity will bolster Honda’s ability to produce approximately 9 lakh units annually, reinforcing its position in the competitive automotive landscape.
Market Growth and Future Prospects
Despite the challenges posed by the COVID-19 pandemic, Honda remains optimistic about its prospects for future growth. The company aims for a double-digit growth rate exceeding 15 percent in the fiscal year 2025, signaling its confidence in the market’s resurgence and rebound.
Sales Performance and Market Share
Honda’s performance in the two-wheeler market has been commendable, with significant gains in both domestic sales and market share. The company achieved a growth rate of 13 percent in domestic sales during the previous fiscal year, with a market share of 25 percent in the overall two-wheeler segment.
Outlook and Conclusion
Honda proactive approach to capacity expansion and product innovation reflects its commitment to meeting consumer demand and staying ahead of industry trends. With the impending launch of the Activa EV scooter and ambitious growth targets, Honda is poised to make a substantial impact in the evolving automotive landscape.