Introduction

The Honda Activa is pretty much the definition of a scooter and is one of the
highest selling two wheeler in India, but does that make it perfect? Not by a
long shot. The TVS Jupiter has been around for while too and though its
numbers aren’t close to the Activa, it comes across as a brilliant scooter that
does everything well. The Activa in its latest 5G trim has a got a host of user
friendly updates while, TVS has tried to give the Jupiter a retro avatar with
the Classic variant. Let the battle begin…
Looks
Design-wise, scooters in India are basically classified into three categories.
You have the family oriented design, the sporty design and with the recently
launched Suzuki Burgman Street, the maxi-scooter design. Now these two
unmistakably boast the family design which is meant to be liked by all and
hated by none. Practicality takes precedence over design and that’s the
name of the game. 

Let’s start with the Activa first. Now the Activa has pretty much become the
definition of a scooter in India and is without doubt one of the highest selling
two wheelers here. So understandable Honda does not want to mess with the
design. So over the years the Activa has been getting mild touch-ups but by
and large the design has stayed true to the original design. For the 5G model,
you get a LED headlamp and a position lamp which gives it a robotic look and
chrome garnish o the front panels along with 5G decals. Other than that the
standard Activa design has been retained.

The Jupiter here is in the ‘Classic’ trim. There is no doubting the fact that
people love retro looks and drool behind the Vespa. Unfortunately the
Vespa’s high sticker price keeps buyers at bay, but that does not stop other
manufacturers from giving their scooters a retro touch.

Honda Activa 5G
 109.19 cc

 60 kmpl

 8 bhp

 ;
109 kg
Avg. Ex-showroomprice

₹ 57,063

3 more Honda Activa scooters - ₹ 52,982 onwards

The Jupiter is the latest scooter to get it. So the classic gets a windshield,
round chrome mirrors, a cushioned backrest and a dual tone seat. Now the
Jupiter is already a handsome looking scooter and while the new additions
look good when you look at the details, overall we think the retro theme does
not gel too well with the angular lines of the Jupiter.
But standing together we still think the Jupiter is the better looking scooter
of the two. Not only does it look bigger but also has better proportions and is
more modern looking between the two.

Instrumentation and seating

The Activa 5G gets all-new instrumentation and looks the part too. So you
now a have a digital analogue combo and it also gets an ECO speed indictor.
You get a digital fuel gauge, a tripmeter and a clock. The speedometer is left
analogue. The whole arrangement is easy to read and looks the part too. Also
for added convenience you now get a 4-in-1 lock along with a seat opening
switch provided in the front. The Activa also gets an 18-litre storage area as
compared to the Jupiter’s 17 litres.

The Jupiter Classic gets a white background for its instrument console to go
with the retro theme. However unlike the Activa 5G, the Jupiter Classic gets
an all-analogue console. The Jupiter also misses out on a 4-in-1 lock and
instead gets separate locks for the seat and the ignition/handle. But the
Jupiter gets an external fuel fill which means no getting off the seat at petrol
pumps. For convenience both the scooters get under seat USB charging as
well. 

Both the scooters get a saddle height of 765mm, however the Jupiter’s
floorboard is a tad bit lower giving it a more comfortable riding stance, while
the Activa gets a slightly larger floorboard area. We also felt the cushioning
on the Jupiter’s seat was on the firmer side making it more comfortable for
longer commutes.
Performance and Handling
Engines in both the scooters haven’t been tinkered with at all and remain
exactly the same. The Activa’s 109.19cc engine puts out 8bhp and 9Nm of
torque. The Jupiter gets a 109.7cc engine and puts out a 8bhp and 8.4Nm of
torque. The Activa weighs 109kg while the Jupiter tips the scale at 108kg. So
if we talk numbers both are pretty much on par however, on the road the
difference in performance is immediately noticeable. 

Gunning the throttle, the Activa literally runs away from the Jupiter. Even
with a heavier rider, the Jupiter could not match the Activa’s peppiness.
Refinement too is a shade better on the Honda but only marginally so. Fuel
efficiency too the Activa nosed ahead with 60 kmpl in our city cycle as
compared to 55 kmpl dished out by the Jupiter. Honda’s HET (Honda Eco
Technology) engine does fare better than the Jupiter’s CVT-I unit.
 

Coming to the handling and braking, the TVS has all the advantages here. It
gets a telescopic front suspension as compared to dated trailing link
suspension on the Activa. The Jupiter gets a 220mm disc in the front and
drums at the rear whereas the Activa uses a drum set-up all around with
combined braking. And finally the Jupiter gets larger 12-inch wheels as
compared to the 10-inch wheels on the Activa.

As a result, the Jupiter not only boasts better ride quality but is also more
composed at higher speeds. Riding on bad sections really takes a toll on the
back on the Activa. The Jupiter’s suspension is definitely more absorbing.
While both are easy to maneuver around city traffic, it’s the Jupiter that
inspires more confidence when one gets a little over enthusiastic around the
corners. The Activa’s CBS works well but is prone to fade under extensive
use. Also the Jupiter’s front disc provides a way better feel at the levers as
compared to the Activa’s which feel spongy.
Our take
The Activa in its 5G avatar finally gets up to speed with the competition and
gets a bunch of features that make it a way better family scooter than its
predecessors. But is that enough to make it the best in its class? Sadly not.
While the features do up the convenience factor, there is no denying the fact
that the Activa’s underpinnings are now dated. The scooter is begging for a
telescopic suspension set up and better brakes. The Jupiter loses out when it
comes to engine refinement, performance and fuel efficiency, but only just.
And finally, the TVS is just Rs. 4552 dearer than the Honda and ends up
offering a way better riding experience thereby making it the winner of this
comparo.   

Photography by Kaustubh Gandhi

Final scores
Parameters Max Points TVS Jupiter Classic Honda Activa 5G
Rank 1 2
Looks & styling 10 5.5 4
Ergonomics & Quality 10 6 5
Features & Tech 10 5 5
Engine & Gearbox 10 5 6
Performance 10 5 6
Ride Quality 10 5 4
Handling & Braking 10 6 4
Fuel Efficiency 10 5 6
Price & Warranty 10 6 7
Desirablility 10 4 3.5
 Parameters Max Points TVS Jupiter Classic Honda Activa 5G
Total 100 52.5 50.5
Specifications
Make Honda TVS
Model Activa 5G Jupiter Classic
POWER TRAIN
Engine Type Fan Cooled Air Cooled
Capacity 109.19 cc 109 cc
Max Power 8 bhp @ 7,500 rpm 7.8 bhp @ 7,500 rpm
Max Torque 9 Nm @ 5,500 rpm 8 Nm @ 5,500 rpm
Gearbox Automatic Automatic
Fuel Efficiency 60kmpl 56 kmpl
CYCLE PARTS
Supension F Trailing link Telescopic
Suspension R Swingarm-linked monoshock Swingarm-linked monoshock
Brakes F  130mm drum  220mm disc
Brakes R  130mm drum   130mm drum 
Tyre F 90/100-10 53 (Tubeless) 90/90-12 (Tubeless)
Tyre R 90/100-10 53 (Tubeless) 90/90-12 (Tubeless)
MEASURES
Fuel Tank 5.3 litres 5 litres
Wheelbase 1,238 mm 1,275 mm
LxWxH 1,761mm x 710 mm x 1,158 mm 1,834 mm x 650 mm x 1,115 mm
Kerb Weight 109 kg 108 kg
COST
Price (on-road, Mumbai) Rs 64,779 Rs 69,331
Scooters are selling like hot cakes for one main reason:
their inherent quality of offering a hassle-free commute. If
you’re looking for point A to B commute and don’t want to
bother with gear shifting, a scooter is the answer. Plus,
they score big on practicality, thanks to an underseat
storage and spacious floorboard space. Honda seems to
have captured the market with its bestseller, the Activa,
and here’s how it stacks up against its primary
competitor, the TVS Jupiter.
Design & Features:
Both the Activa and the Jupiter look like typical family
scooters. Their purposeful metal bodywork is devoid of
flashy graphics, and look quite premium. The Activa
features an LED headlamp, while the Jupiter makes do
with a halogen unit. However, the Jupiter gets an LED tail
light. The Activa gets an analogue digital instrument
cluster with ‘Eco’ speed indicator. Similarly, the Jupiter
also gets an ‘Eco’ and ‘Power’ indicator which tells you
whether you’re riding aggressively or efficiently.
Both the scooters feature an apron hook and a hook under
the seat. The Activa has handle lock that secures the
steering only when tilted towards the left, whereas the
Jupiter has a double-sided lock. This should come in
handy when parking at odd angles. At 18 litres, the
underseat storage on the Activa is bigger than the
Jupiter’s by a litre. However, the Jupiter features an
external fuel filler for added convenience, while the
Activa’s fuel cap is under the seat. Both get an underseat
USB charging port as an option. The ZX variant of the
Jupiter features a Duracool seat which TVS claims is 10
degree celsius cooler under sunlight when compared to a
normal seat.
Powertrain:
The Activa and the Jupiter are more or less equal in terms
of power output, but the former is more torquey. This
helps in accelerating quicker off the line and for lugging
heavier weights as well. In our tests however, the Activa
clocked 0-60kmph in 10.55 seconds, while the Jupiter
(Classic variant) took 9.16 seconds only. The claimed
efficiency figure for the Activa stands at 60kmpl while
TVS claims that the Jupiter will return 62kmpl.
Underpinnings:
The Jupiter features better underpinnings than the Activa,
and is noticeably more comfortable too. The telescopic
forks in Jupiter soak up bumps much more efficiently than
the bottom-link unit in the Activa. The Jupiter also gets a
220mm front disc as an option, apart from the standard
Sync Brake System (SBS)-equipped drum brakes. The
Activa makes do with only drum brakes with Combi Brake
System (CBS). These two features work on the same
principle of applying a part of the brake force on the front
as soon as the rear brake lever is pulled. The large 12-
inch wheels contribute to Jupiter’s pliant ride quality too.
Dimensions & Price:

The Jupiter’s longer wheelbase results in better stability

at higher speeds. The Activa pulls one back though with a
slightly larger fuel tank. Honda sells the Activa 5G in
Standard and DLX variant, priced at Rs 53,565 and Rs
55,430, respectively. The TVS Jupiter is available in the
base (Rs 51,163), ZX (Rs 54,111), ZX Disc (Rs 56,163) and
Classic Edition (Rs 57,323) (all prices, ex-showroom
Delhi).
Verdict:
The ZX Disc variant of the TVS Jupiter seems to be a
better deal in comparison to the top-end Activa
considering the overall dynamics and features that TVS
offers. The Classic Edition is essentially a retro-style
variant of the regular Jupiter, complete with windshield,
chrome grab rails with cushioned backrest, premium seat
and apron panels.
In the last few years, the sale of scooters in India has
seen a windfall change. The rapidly growing segment
has seen many new entrants. The industry has been
ruled by Honda Activa for many years now. TVS has not
been too far behind and its Jupiter has also become a
favourite for many and is only second to the Activa, in
terms of sales. Both these brands have created a
strong presence in the country and are top of the mind
of any buyer. Reliability and a wide service network has
ensured that they keep going strong. Honda had
recently launched the Activa 5G, with new features.
The Jupiter also has been getting periodic upgrades.
We pit the two scooters against each other, to let you
know which is better. To know more, keep reading
further for the Honda Activa 5G vs TVS Jupiter
Comparison.
Honda Activa 5G vs TVS Jupiter Price
Honda Price (ex- TVS Price (ex-
Activa 5G showroom, Jupiter showroom,
Variant Mumbai) Variant Mumbai)

Standard ₹54600 Standard ₹52800

Deluxe ₹56500 ZX ₹55300

ZX with
Disc ₹57600

Classic ₹58800
Both scooters are priced closely and there is not much
difference. The Honda Activa 5G deluxe costs INR
56,500 (ex-showroom Mumbai), while the comparable
variant TVS Jupiter ZX costs INR 55,300 (ex-showroom,
Mumbai). The Activa 5G is slightly more expensive in
comparison.

Honda Activa 5G vs TVS Jupiter Design

The Activa and the Jupiter are utility scooters. Styling
is not their USP. However both companies have
ensured that they look contemporary and stylish. The
design is basic scooter like and in this department
there is very little to choose between them. Both
scooters are free of body graphics and have a clean
look. The TVS Jupiter ZX gets a dual tone theme to add
some excitement, which we are not a fan of. The Activa
5G has quite imposing looks as well. Both these
scooters have a metal body (except the front panel).
The Jupiter adds some more flair as it gets alloy wheels
which are black in colour. This gives it a slight
advantage over the Activa in terms of appeal.

Also Read: Honda Activa 5G details

Honda Activa 5G vs TVS Jupiter Features
Both scooters are quite feature rich. The Honda Activa
5G now comes with a seat opening switch next to the
ignition key. This makes it easy to open the seat as one
does not have to remove the key from the ignition.
However, the seat needs to be opened for filling fuel.
The Jupiter on the other hand does not have a seat
switch and you need to remove the key and slot it on
the side panel to open the seat. However, the fuel filler
cap is placed outside, which eliminates the need to
open the seat for filling fuel.

The Activa 5G also gets a new LED headlamp and there

is a digital inset on the instrument panel, available only
in the deluxe variant. This inset has a fuel guage, trip
meter, clock and a service reminder too. There is also
an Eco mode indicator next to the speedometer. The
TVS Jupiter gets a regular halogen headlamp and has a
fully analogue panel. It also has a Eco and Power mode
indicator. Additionally, it also has a Pass switch for the
headlamp.

The Jupiter beats the Activa in features as it gets 12-

inch alloy wheels and a front telescopic suspension.
The Activa 5G gets 10-inch steel wheels and it uses a
traditional front suspension.

Honda Activa 5G vs TVS Jupiter Mileage

The claimed mileage of Honda Activa 5G is 60km/l and
the TVS Jupiter has a claimed mileage of 62 km/l.
However, in daily city riding conditions, both these
scooters will return around 40-45 km/l, on an average.
This will depend upon the rider and also conditions.
Honda Activa 5G vs TVS Jupiter
Performance

High performance is not what these scooters are built

for, but they have enough power for daily usage. The
Activa 5G get a 109bhp engine which churns out around
8bhp of power and 9Nm of torque. The Jupiter also has
a 109cc engine with 8bhp of power and 8Nm of torque,
which is slightly lower than that of the Activa. But this
difference is hardly felt while riding. In fact, it is the
Jupiter which feels peppier during intial acceleration.
The Activa 5G on the other hand, has better higher end
performance. After 50km/h, it is the Activa 5G that
takes the lead.

Honda Activa 5G vs TVS Jupiter

Practicality
As they both are meant for daily practical use, they get
useful storage options. The Activa has a bag hook
below the handlebar and a retractable hook under the
seat. The Jupiter has both these hooks as well and both
are retractable. Under seat storage is good on both,
however the Activa has a deeper under seat storage. A
half helmet can fit in both scooters. There is a uselful
grab handle on both these scooter at the rear, for the
pillion. The seat of both scooters is similarly
comfortable, broad and long. The seat height of the
Jupiter is slightly lower than Activa, however, both
scooters are suitable for short riders.

Honda Activa 5G vs TVS Jupiter Ride and

Handling
This is an area where the TVS Jupiter excels. The
Jupiter feels lighter and more agile too. Swerving,
taking corners and even high speed stability, the
Jupiter feels better as compared to the Activa 5G. One
of the reasons for that, apart from the loer weight is the
fact that the Jupiter gets 12-inch wheels and a
telescopic front suspension. This makes the handing
much more improved. In term of ride quality, there is
little to choose between the too as both offer a pliant
ride.

In terms of brakes, the Activa 5G gets Combi Brakes,

while the TVS Jupiter gets Sync brakes. The function of
both is similar. Additionally, Jupiter also has an option
of a front disc brake, which is not available in the
Honda Activa 5G.

SWOT Analysis of TVS

TVS Motor Company is a manufacturer and marketer of
two-wheeler as well as three-wheeler vehicles and
has operations in India, Indonesia, Singapore and
some parts of Europe. TVS Motor Company is based out
of Chennai, Tamil Nadu, India and India is its major
market. It is the third largest two-wheeler vehicle
manufacturer in India.

Strengths in the SWOT Analysis of TVS :

Multiple brands across portfolio: TVS offers mopeds,
motorcycles, scooters and three wheelers and has
popular brands amongst all the categories. For
example, motorcycles include popular brands like
Apache RTR and Star City etc. whereas scooters
include TVS Jupiter and Scooty pep+ etc.

Strong financial performance: TVS has experienced

strong financial performance in recent years. It
recorded growth in revenues (12.3%) and operating
margin (4.8%) in FY2016. Thus, the company has
improved its financial conditions which enhance
shareholder’s value and supports growth plans.

Strong R&D capabilities: TVS has set up a strong

research and development department which allows
constant innovation in its product design and include
newer technologies in its products. This provides
a competitive advantage to TVS.

Weaknesses in the SWOT Analysis of TVS

:
Lack of Scale: Although TVS has experienced the
increase in revenues in the recent past, it still doesn’t
stand tall when compared to large companies
like Bajaj Auto and hero MotoCorp. These companies
have the capital advantage over TVS.

Overdependence on domestic market: India is TVS

motor’s primary market contributing over 75 percent
of its revenues. TVS has limited geographical diversity
and hence is over dependent on the Indian market. Any
vulnerability in the Indian market will affect the
company’s finances.

Opportunities in the SWOT Analysis of

TVS :
Growing Indian 2-Wheeler market: India has witnessed
rapid growth in the 2-wheeler market which is expected
to continue in the near future. India is the second
fastest growing market in the two-wheeler industry.
This presents an opportunity for TVS to encapsulate
the demand created.
Growth in three wheeler market: The three wheeler
passenger as well as load carrier market is growing in
India. The three wheeler industry has grown with a
CAGR of 4.4% from the period 2005-2015. This also
creates and opportunity for TVS.

Optimistic outlook for global motorcycle industry: TVS

must look forward to expanding operations globally in
order to tap the positive outlook for the global
motorcycle industry which is expected to grow at a
CAGR of 6.3% till 2019.

Threats in the SWOT Analysis of TVS :

Intense competition: The Indian two-wheeler industry
is highly competitive with the presence of various
multinational and national brands such as Yamaha,
Bajaj Auto, Honda and hero MotoCorp etc. TVS being
subjected to such competition has to constantly
innovate in order grow in such intense competitive
atmosphere.

Environmental regulations: The Company is subjected

to various stringent environmental regulations which
are constantly upgraded and hence the compliance
costs increase.

Improvement in public transport: The public

transportation facilities in India are improving which is
a threat to the passenger vehicle industry as a whole.

SWOT analysis of Honda

Ovidijus Jurevicius | November 5, 2016 Print

This is Honda Motor Company, Ltd. SWOT analysis. For more information on how to do a SWOT
analysis please refer to our article.
Company Background

Key Facts

Name Honda Motor Company, Ltd.

Founded September 24, 1948

Logo

Industries
Automotive, Aviation, Robotics, Finance
served

Geographic
Worldwide (more than 100 countries)
areas served

Headquarters Minato-ku, Tokyo, Japan

Current CEO Takahiro Hachigo

 JPY ¥14,601.1 billion (2016) 9.6% increase over JPY ¥13,328.1 billion
Revenue
(2015)

JPY ¥406,358 billion (2016) 27.6% increase over JPY ¥561,098 billion
Profit
(2015)

Employees 208,399 (2016)

Bayerische Motoren Werke AG, Chrysler Group LLC, Daimler AG, Ford
Main Motor Company, General Motors Company, Nissan Motor Company,
Competitors Hyundai Motor Company, Tata Motors, Ltd., Toyota Motor Corporation,
Volkswagen AG and many other automotive companies.

Honda Motor Company (further Honda or Company) is a Japanese motorcycle, automobile, aircraft
and engine manufacture. The Company was founded in 1948 by Soichiro Honda, as an automotive
parts manufacturer. Honda later moved to manufacturing motorcycles and has become the world’s
largest motorcycles manufacturer in 1959.[2]

In 1962, Honda started manufacturing automobiles and was the first company to launch a dedicated
luxury brand, Acura, in 1986. The Company is now the 8th largest auto manufacturer in the world.

Over the years, the Company has ventured into many industries and is now manufacturing jets and
robots.

Honda always highlighted that its core business is engines and all the products the company has
ventured in is built around them. Company has been growing significantly over the past few years,
mainly due to its automobile business.

SWOT
 Honda SWOT analysis

Strengths Weaknesses

1. Competence in engine manufacturing 1. Dependence on North America to

- company’s core product generate most of the revenue
2. Diversified product portfolio 2. Low investments in research and
3. Dominance in motorcycle and engine development (R&D) leading to innovative
industries leading to a high brand awareness products
4. Strong position in Asia’s motorcycle
markets

Opportunities Threats

1. Increasing government regulations 1. Increased competition

2. Improving U.S. economy 2. Rising Japanese Yen exchange rates
3. Timing and frequency of new model 3. Natural disasters
releases
4. Low fuel prices are increasing the
demand for pickup trucks and SUVs

Strengths

1. Competence in engine manufacturing - company’s core product

All Honda’s businesses are built around the engines - its core product. The company’s first engines
were built for motorcycles and power equipment, but were later produced for cars and marine vehicles.
Honda is the world’s largest engine manufacturer, which produced over 27 million units of engines for
automotive, motorcycle, marine, and power equipment products, in 2015.[3]

The company has lots of experience in manufacturing quality and well-performing engines. Its engines
are praised for their durability, easiness to start, quietness, fuel efficiency and reliability. According to
Reliability Index,[4] Honda’s car engines are some the most reliable in the industry.

Engines are the key to motor products and the company’s competence in manufacturing engines is a
competitive advantage few rivals can match.

2. Diversified product portfolio

Honda operates 4 different divisions:

 Motorcycle business (12.3% revenue)

 Automobile business (72.8% revenue)
 Power product and other business (2.3% revenue)
 Financial Services (12.6% revenue)
Honda offers many products to consumers including engines, cars, motorcycles, jets, robots,
generators, lawnmowers, water pumps, as well as many other power equipment products. While the
cars generate the most revenue for Honda, its overall product portfolio is fairly diversified, when
compared to Volkswagen, Toyota, General Motors, or Briggs and Stratton (in an engine industry).

Figure 1. Percentage of Sales Revenue by Business

Source: Honda’s Financial Report[1]

3. Dominance in motorcycle and engine industries leading to a high brand awareness

Honda is a huge company dominating in most of the markets it operates in, including engines and
motorcycles.

The company is the leading manufacturer of small, general purpose engines for commercial, rental
industry, and consumer applications.[5] Honda is also the leading global manufacturer of motorcycles
having 22.1% of the total market share in the first half of 2016.[1] Company’s dominance in both of
these markets have increased its brand recognition and reputation.

According to Interbrand[6] and Forbes,[7] Honda is the 21st and 23rd most valuable brand in the world,
worth US$22.1 billion and US$25.2 billion, respectively. Brand value is closely related to brand
awareness and its reputation and only few other companies, such as Toyota, BMW and Mercedes-
Benz, can compare with Honda in terms of a brand value.

4. Strong position in Asia’s motorcycle markets

Motorcycle business generates 12.3% of total Honda’s sales and is the third largest revenue group for
the company. The company has sold 17,592 units of motorcycles and all-terrain vehicles in 2016 alone
and captured 22.1% of the world’s motorcycle market in the first half of 2016.

Asia is the main geographic segment for Honda’s motorcycle business, where the company has sold
15.1 million units or over 88.7% of its total motorcycles, generating ¥1,107.6 billion in revenue.

Asia-Pacific region, which includes such countries as China, India, Vietnam, Thailand, the Philippines,
Malaysia, Indonesia, Australia and Japan, is the largest motorcycle region in the world and Honda’s
strong position in it is a powerful competitive advantage.

Weaknesses

1. Dependence on North America to generate most of the revenue

Honda depends on North America region, which mainly includes the U.S. and Canada, to generate
55.6% of the company’s total revenue.

Figure 2. Percentage of Sales Revenue by Region

Source: Honda’s Financial Report[1]

Honda’s reliance on North America grew from 49.3% of the total sales in 2014 to 55.6% of the total
sales in 2016. At the moment, North America is the main driver behind company’s growth where the
motorcycle revenue grew 20% and the automobile revenue grew by 19%. Nonetheless, the U.S. and
Canada are saturated markets and Honda will find it hard to maintain the same level of growth in these
markets.
The company is also becoming more vulnerable to overall negative changes in North America’s
markets.

2. Low investments in research and development (R&D) leading to fewer innovative products

Honda has spent US$5.4 billion for R&D in 2015. This amounted to 4.5% of the company’s total
revenue.

Figure 3. Comparison of R&D expenditure – Honda and selected major competitors (in US$
billions)

Company 2015 R&D As a % of revenues 2014 R&D As a % of revenues

Honda 5.4 4.5 5 4.5

Toyota 8.4 3.7 7.6 3.5

Volkswagen 14 6.9 14 7.1

General Motors 7.5 4.9 7.4 4.7

Source: The respective companies’ financial reports[1][5][6][7]

Low investments in R&D lead to fewer innovative products and significantly undermine the company’s
abilities to compete in the future. The company should focus its US$5.4 billion R&D investments to
certain areas (like Hyundai does), which would erase company’s low R&D budget disadvantage and
would result in innovative products.

Opportunities

1. Increasing government regulations

Many governments around the world are committed to reducing the greenhouse gas emissions and are
encouraging fuel efficiency initiatives. Such environmental initiatives may increase production costs
for the car manufacturers and these costs will be either passed to price sensitive consumers or will
decrease the company’s profits. Honda may take advantage of this by introducing more car models
running only Hydrogen fuel cells and bypassing all the government regulations associated with the
greenhouse gas emissions.

2. Improving U.S. economy

Signs of an improving economy and rising consumer confidence have been reflected in the strongest
increase in new vehicle sales for more than a decade in the U.S. market. 17.5 million new units were
sold in 2015, a 5.7% increase over 2014. Interest rates in the U.S. have been low for several years and
are forecast to remain that way for the foreseeable future. In such economic conditions, Honda has an
opportunity to capture higher market share and increase sales in the U.S. automotive market.

3. Timing and frequency of new model releases

The market share of the automotive companies is significantly impacted by the timing and frequency of
new model releases. Historically, new models have tended to have major upgrades every 4 or 5 years
with only minor modifications in between. However, due to the rising consumer expectations in
relation to in-car technology and the competitive nature of the industry, there is an argument to release
upgraded models more frequently. Honda is well-positioned to be able to do this.

4. Low fuel prices are increasing the demand for pickup trucks and SUVs

Currently, fuel prices are the lowest in a decade. Such situation has encouraged consumers to buy big
fuel-inefficient vehicles such as SUVs and pickup trucks. Traditionally, Honda’s main focus was on
smaller cars like Honda Civic and sedans such as Honda Accord, but in the current situation, where
fuel prices are low, the company has introduced its next generation pickup truck Ridgeline and
redesigned its CR-V sport utility vehicle to meet the demand for the bigger vehicles.

The trend of low fuel prices is likely to stay and Honda should introduce more models of pickup trucks
and SUVs to take an advantage of the growing market for these vehicles and to increase company’s
profitability.

Threats

1. Increased competition

Honda is faced with an ever increased competition from the traditional automotive companies, the new
players and saturation of its main markets. In Asia, the company’s key motorcycle region, markets are
nearly saturated. In 2016, Honda’s motorcycle revenue grew by only 5.4% in Asia, compared to 20.3%
growth in North America region. The company faces many new entrants in India and China, which
offer similar quality motorcycles and scooters for lower price than Honda.

Honda’s automotive business is also experiencing the slowing growth of the automotive markets and
the increased competition from the new Chinese manufacturers. The company’s international rivals,
such as Toyota, Ford, General Motors, Volkswagen and Hyundai, all have larger budgets and could use
them to aggressively take market share from Honda.

New companies, such as Tesla and even Google, which tries to build self-driving cars are also
threatening the traditional automotive industry. The competition is further fueled by the fact that the
global automotive production capacity far exceeds the demand. In 2015, there was an estimated global
excess production capacity of 31 million units.[11]

2. Rising Japanese Yen exchange rates

More than 88% of Honda’s revenue come from international markets, which means that the company
has to convert foreign currencies to Japanese Yen in order to calculate its revenues and send the profits
back to Japan. Currency rates are volatile and the company’s profits and revenue highly depend on the
fluctuating exchange rates. The company cannot control the currency exchange rates, therefore it is at
risk, if Japanese Yen exchange rates would start to rise. In such case, the company’s profits would
decrease significantly. The company itself identifies this as a key threat that will negatively affect the
company over the next few years.

3. Natural disasters

Honda has manufacturing facilities in Japan, Thailand, China and Indonesia. These countries, including
others, are often subject to natural disasters that disrupt manufacturing processes and result in lower
production volumes and profits.
Honda PESTLE Analysis
PESTLE Analysis of Honda analyses the brand on its business tactics. Honda PESTLE
Analysis examines the various external factors like political, economic, social,
technological (PEST) which impacts its business along with legal & environmental
factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact
the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as Honda, as it

helps to understand market dynamics & improve its business continuously. PESTLE
analysis is also referred to as PESTEL analysis.

Let us start the Honda PESTLE Analysis:

Political Factors:

The political factors in the Honda PESTLE Analysis can be explained as follows:

Honda operates across various countries across the world. The reason for both its
growth and restrictions faced, in the governments in the various countries. The various
political influences that affect the interests of the company need to be monitored and
controlled. Though Honda does not have its own internal political party lobbying
committee, it does exhibit a certain level of influence on certain governments. The
reduction in the corporate taxes in India, the upcoming development in African countries,
benefits the company, while the trade between China and the US, the changing tariffs of
import and export across various countries, have a negative impact on the company’s
profit generation. With countries moving towards a sustainable environment, and
reduction of pollution various governments across the world have taken up curbing the
use of individual vehicles by various policies. The use of odd and even vehicle number
scheme in Delhi is an example. This factor had a significant effect on the sales of the
vehicle. With countries promoting battery-driven cars, the company has to buckle up to
gain the lead in the field of battery-driven cars. To gain a breakthrough and develop
cutting edge technology the company will have to invest more in research and
development. Certain governments have invested huge amounts in the R&D of hybrid
vehicles. Since Honda already produces hybrids, this is a good place for the company to
expand.

Economic Factors:
Below are the economic factors in the PESTLE Analysis of Honda:

The various automobile types produced by the company are perceived differently in
different regions of the world. With scooters being considered a luxury item in
international markets eg. In Europe, they are very common in Asian markets. India is the
largest market in Asia for two-wheelers. Honda should consider the economic conditions
prevailing in the country when launching a new vehicle and also control the pricing of the
existing vehicles. In a period of a low rise in income, luxury products like a car in India are
facing a slowdown. The sales are expected to increase once the economy stabilizes.
Similarly, with situations like Brexit create tension and affect the currency exchange rate.
In such cases, the company loses out on profitability even if the sale is constant. To keep
up with the changing trend, Honda has decided to work on economic and eco-friendly
vehicles worldwide. With a rise in the prices of petrol and diesel, the company might see
a drop in sales. To avoid this the company must focus on developing new vehicles with
more sustainable and cheaper fuel to gain a majority in the market.

Social Factors:

Following are the social factors impacting Honda PESTLE Analysis:

The consumers of the various automobile produced by the company seek different
things. The range provided by the company in terms of satisfying its customers is
impressive. This importance given to the consumer has been depicted by the company
over the years of its existence. Various social stigma have been eradicated allowing
newer opportunities for the company. An example of the same is women being allowed
to drive in Saudi Arabia, thus opening up new opportunities for the company. The
company has launched various high-end two-wheelers across the world but has stuck to
entry-level two-wheelers in India. Based on customer demand, Honda has finally decided
to expand its market in India by launching various advanced bikes into the market by the
end of 2019. With more and more people willing to buy electric vehicles, Honda has a
good opportunity to expand its market by utilizing renewable energy to run its
automobiles. The company is thinking about venturing into electric scooters. Though it
may seem risky initially, but for a company like Honda it will be easier to convince the
customer to invest a little more for the betterment of the society as a whole. The
company has been working on manufacturing cars indigenously for regions that do not
believe much in an imported car, eg. The UK. Honda uses English majorly to remove the
language barriers worldwide.
Technological Factors:

The technological factors in the PESTLE Analysis of Honda are mentioned below:

With the world getting more advanced day by day, Honda has put in great efforts to stay
up with the changing trends. The company installed GPS in its latest models. It has come
up with new iv technology which is an upgraded version of its v-tech engines. This will
help the company make its contribution towards reducing the amount of carbon in the
atmosphere. In India, Honda has used its advanced technology to release the new BS6
compliant Activa. Its new scooter to be launched is the Genio. It boasts the use of
various leading technologies in the construction of the two-wheeler. Honda believes in
creating a one of a kind experience for the consumers and thus tries to fulfill all the
needs of the consumers. With an increase in the need to switch to renewable energy
sources, Honda has utilizes proximately 60% of the total energy required for
manufacturing from renewable sources, thus itself promoting the need for people to
switch.

Legal Factors:

Following are the legal factors in the Honda PESTLE Analysis:

When a company like Honda works across various countries, there are various legalities
it needs to follow. There are various environmental laws that change, which affects the
production of automobiles. An example of this is the shift in India from BS4 to BS6.
Though the change was spread across a period of time, it was still a drastic one for the
company. In many countries, the rules for hybrid and completely electric vehicles have
not yet been defined appropriately which poses a further threat to the company. A
change in any of the legalities, will lead to the implementation of major changes and thus
affect the profitability as well as the day to day operations of the company. To avoid
being sued the company needs to keep a tab on the quality of all automobiles it
produces. Such was the case when the company had to recall 50000 of its two-wheelers,
on grounds of faulty breaks. Beyond the legal difficulties faced, Honda also needs to
work on the pricing policy according to the different countries it operates in. It also needs
to keep a tab on the policies related to the working hours of the employees as well as
minimum wages it needs to provide to its employees working in these countries.

Environmental Factors:
In the Honda PESTLE Analysis, the environmental elements affecting its business are as
below:

To respond to the changing climate, the company has established various policies and
programs across the world. The Sustainability statement of the company states
“Realizing the joy and freedom of mobility and a sustainable society where people can
enjoy life” and strives to achieve it. The company is moving forward through its initiatives
to create a zero-impact society. By aiming to cut total corporate CO2 emissions to half by
2050, Honda will continue its activities to reduce CO2 “using science-based target
setting”. Honda is working to achieve its Product CO2 Emissions Reduction Targets by
2020 and wish to reduce the intensity of pollution created by motorcycles, automobiles
and power products worldwide by 30%. Honda actively promotes its electrified products
and wishes to convert two-thirds of its fleet to electric by 2030. Honda believes in the
efficient utilization of resources. The use and depletion of rare-earth metals, used in
various processes, depicts a major problem for the industry. Thus Honda promotes the
3R’s of reduce, reuse and recycle throughout its empire. Honda is also making efforts to
reduce the use of water in its processes. To save the atmosphere, the company has
managed to create more efficient engines that carry out combustion in a better manner.
Honda faces the risk of changing environmental policies across the various countries of
the World. But till the company keeps a track of sustainability, it will be safe from any sort
of legal work.

To conclude, the above Honda PESTLE Analysis highlights the various elements which
impact its business performance. This understanding helps to evaluate the criticality of
external business factors for any brand.

TVS Motors SWOT Analysis, Competitors,

Segmentation, Target Market, Positioning &
USP
SWOT analysis of TVS Motors analyses the brand/company with its strengths,
weaknesses, opportunities & threats. In TVS Motors SWOT Analysis, the strengths and
weaknesses are the internal factors whereas opportunities and threats are the external
factors.
SWOT Analysis is a proven management framework which enables a brand like TVS
Motors to benchmark its business & performance as compared to the competitors and
industry. As of 2020, TVS Motors is one of the leading brands in the automobiles sector.

Detailed SWOT Analysis of TVS Motors along with Marketing Analysis &
Competition:

The table below lists the SWOT (Strengths, Weaknesses, Opportunities, Threats), top TVS
Motors competitors and includes TVS Motors target market, segmentation, positioning &
Unique Selling Proposition (USP).

Table of Contents +

TVS Motors SWOT Analysis, Competitors, Segmentation, Target Market,

TVS Motors Brand Analysi

Parent Company TVS Group

Category Motorcycles, Scooters

Sector Automobiles

Tagline/ Slogan We love to see you smile

USP One of the largest three two-wheeler manufacturers in India

TVS Motors STP

TVS Motors
Middle-class people who want a bike that is stylish and gives a good mileage
Segmentation

TVS Motors Target

Middle class youth from the age bracket of 25-35
Market

TVS Motors
Bikes which will bring a smile in the lives of customers
Positioning

TVS Motors Product Portfol

1. TVS Apache                      2.TVS Scooty

Brands 3. TVS Victor
The above mentioned brands are the prominent products under the TVS Motors product port

TVS Motors SWOT Analysi

Below are the Strengths in the SWOT Analysis of TVS Motors:

1. Huge brand equity and one of the biggest players in the two wheelers Indian market
2. Excellent R&D, and wide variety of products in every segment
TVS Motors
3. Excellent distribution and good number of service centers
Strengths 4. TVS Group has over 40,000 employees and a customer reach of over 15 million
5. Associating itself with celebrity brand ambassadors
6. ‘Scooty’ as a brand has become a second name for the scooterrate segment

TVS Motors Here are the weaknesses in the TVS Motors SWOT Analysis:
Weaknesses 1. Absence in the premium  bike segment
 Following are the Opportunities in TVS Motors SWOT Analysis:
TVS Motors
1.Two-wheeler segment is one of the most growing industries
Opportunities 2.Export of bikes is limited i.e. untapped international markets

The threats in the SWOT Analysis of TVS Motors are as mentioned:

TVS Motors 1. Strong competition from Indian as well as international brands
Threats 2. Dependence on government policies and rising fuel prices
3. Better public transport will affect two-wheeler sales

TVS Motors Competition

Below are the top 7 TVS Motors competitors:

1. Bajaj Auto Limited
2. Hero Motor Corp (Hero Honda)
3.Yamaha
Competitors 4.Suzuki
5. Harley Davidson
6. Royal Enfield
7. Ducati Superbike

The brandguide table above concludes the TVS Motors SWOT analysis along with its
marketing and brand parameters.

Similar analysis has also been done for the competitors of the company belonging to the
same category, sector or industry. Browse marketing analysis of more brands and
companies similar to TVS Motors. The BrandGuide section covers SWOT Analysis,
Competitors, Segmentation, Target Market, Positioning & USP of more than 5000 brands
from over 20 industry sectors.

Verdict
Which is the better amongst the two? Well, it is kind of
hard to arrive at a conclusion. Both of these are fine
scooters and offer a good rounded package. The price
is also not too different. If you want be more assured,
then the Honda Activa 5G is the one you should be
looking at. This is the highest selling two-wheeler in the
world and has been a popular brand for many years.
However, if you prefer a ride with some more fun and
better handling, then you should go for the Jupiter.