Honda's Scooter Market Share Declines Sharply in India, Competitors Gain

Honda Motorcycle and Scooter India (HMSI), once a dominant force in the Indian scooter market with its Activa model, is now facing a substantial erosion of its market share. The company's share has fallen from a high of 52% in Fiscal Year 2021 to below 40%, standing at 39% as of September. This comes as the overall Indian domestic scooter market has grown by 49% to 6.85 million units by FY25. In contrast, HMSI's volume growth has been a more modest 22% during the same period.

This shift has significantly benefited competitors. TVS Motor Company has seen its market share climb from 20% in FY21 to nearly 30% by September, driven by its popular Jupiter model. Suzuki has also expanded its presence, increasing its share from 11% to 15% and surpassing one million scooter sales in FY25. Market observers attribute Honda's decline to a surge in competition and a slower response from the company, citing Honda's mild update for the Activa in January 2025 compared to a more robust update for TVS Jupiter in August 2024.

Impact This sustained loss of market share could negatively affect HMSI's overall sales performance and profitability. For investors, it signals a shift in market dynamics, highlighting the increasing competitive pressures and the need for Honda to innovate and adapt more rapidly to consumer preferences and competitor strategies to regain lost ground. Rating: 7/10.

Difficult Terms: Market Share: The percentage of total sales in a specific market that a company commands. FY21 / FY25: Fiscal Year 21 / Fiscal Year 25, referring to the financial periods from April 1, 2020, to March 31, 2021, and April 1, 2024, to March 31, 2025, respectively. Volume Growth: The increase in the number of units sold by a company over a defined period. Domestic Volume Performance: Refers to the sales figures within the company's home country.