Honda Activa’s Production Life cycle

Concept of Product Life Cycle

Products (Like Soap, Cars, Chocolate or even Honda Activa) have a life cycle as we people and other human beings have. We, humans, have stages of like Infants/children, Teens, Adults and Old; Likewise, products do have a life cycle. Product has four stages in their life cycle those are: introduction, growth, maturity, and decline. This concept is used by management and marketing experts as a factor in deciding when it is convenient to increase advertising, slash prices, expand to new markets, or redesign packaging. And here we will talk about Honda Activa.

Need of Product Life Cycle

• Helps in avoiding the decline stage by adopting product modification, pricing strategies, style, quality, change, etc.
• Product plans are made out of the Product Life Cycle (PLC)
• Helps in updating the technology to improve the product quality, features and design.
• Provides the firm with the price control parameters which the firm can refer to set or change the price accordingly.

Product Life Cycle Of Honda Moto Scooters

Honda

Honda Motorcycle and Scooter India, Private Limited (HMSI) is the Indian subsidiary company of Honda Motor Company, Limited, Japan the world largest producer of two-wheelers.

Currently, Honda Motors and Scooter India (HMSI) has four manufacturing locations at Manesar in Haryana, Tapukara in Rajasthan, Narsapura, Kolar in Karnataka and Vithalpur, NW of Ahmedabad.

Honda’s only scooter manufacturing plant is in Gujarat. Its production facility in Narsapura is the biggest among all and has a capacity of 6,600 vehicles per day. HMSI’s sales jumped to the peak up to 4.28 million vehicles backed by scooterization of India with the help of bestselling scooter Activa over 350,000 scooter sales in September 2017. In other words, Honda is the one who scooterized India with Activa.

Scooters of Honda

• Cliq
• Dio
• Aviator
• Activa-i
• Activa 5G
• Activa 125
• Grazia

Construction of PLC of Honda Scooters

Data

The Data taken into consideration for the making of the Product Life Cycle of Honda Moto-Scooters are the Annual Sales (Units). Data source: Honda YES India

The data are as follows:

Graph

Here is the Product Life Cycle (PLC) graph prepared out of the data on the above table.

PLC Analysis

Introduction Stage

FY2001-02 to FY2006-07

The time period from FY2001-02 to FY2006-07 can be said as the introduction phase of the Moto scooter segment of Honda. During this period the segment suffered from various problems like Low Average, Sophisticated Design of Engine.

Growth Stage

FY2007-08 to FY20017-18

The growth stage started from FY2007 and stretched to the current time. As it is uncertain that it maturing or not for the total sector’s decline. In this period of HMSI opened their new plants in Rajasthan, Karnataka, and Gujarat respectively to support the growth in demand. Also introduced Honda Eco Technology (HET) which solved the problems it faced in the introduction stage i.e. of Low average.

It also changed the body models of specific vehicles which have existed for a lot of years like Activa and Aviator. And also added new features like disc brake o aviator and provided a new engine of 125cc displacement to Activa to provide more power. And finally, the sales touched their peak in FY 2017 i.e. 4,010,980 units of ATSC.

This growth was achieved by taking the Scooterisation of India concept very seriously now I think it’s easy to find an ATSC vehicle in everyone’s house and business. The product is designed in such a way that it suits multi demographic factors.

Maturity Stage

A slight decline can be seen after the highest sales record in FY2018. But registering it as the Maturity will not be justice keeping the current performance of overall automobile sector in view, it may be said as the maturity only for the reason of its existence in the market v.i.z. about 2 Decades and more.

The introduction of EV and Connected vehicles like TVS Ntroq can also be said as the reason for the drop in the sales figure, which was covered up by its new product Honda GRAZIA.

Conclusion

As it seems like Honda’s ATSC (Honda Moto Scooter) sector has reached the peak of its Growth, and the product is in Maturity. For the last 2-3 years its been seen that the company is now sustaining its products by releasing a new model of it and adding future with the same range of money. The decline stage may reveal itself soon. Honda May launch EVs to be the game-changer. Maybe the same Activa with a Hybrid engine or a fully electric one, Let’s see whats the Japanese company does to stay in its position in near future.