PUNJABI UNIVERSITY

PATIALA
TOPIC = HONDA ACTIVA
COURSE = MBA (REGULAR) SEM- 1
SUBJECT = MANAGERIAL ECONOMICS

SUBMITTED TO:-
PARNEET KAUR.
SUBMITTED BY:-
SWATI SHARMA
ROLL NO :-20421074
About Honda Activa

The Honda active is a motor scooter made by Honda Motorcycle and Scooter India (HMSI).
It was launched in India in May 1999. Production in Mexico began in 2004. It is a
109/125 cc, 7 bhp (5.2 kW) scooter. The vehicle has the option of kick and self start. India’s
most successful scooter.
 Honda Motorcycle and Scooter India, private Limited (HMSI).
 Founded in 1999.
 Subsidiary company of Honda motor company, Limited, Japan.
 Basically originally Honda Company was established in 1959 by, Sochiro Honda.
 Currently Mr. Hironori Kanayama is the president of HMSI
 There were basically two models of active
 First model was launched in 2000, and second model was launched in 2009.
 Second model was much more energy efficient that increased the demand of the
Activa.

According to Prof. Benham, “Anything that contributes towards output is a factor of

production.”

Some details about Honda Activa

 Manufacturer – Honda Motorcycle and Scooter India
Honda De Mexico
 Production – 2001- present
 Transmission – CVT
 Model version – Honda Activa 125, Honda Activa 5G LTD. Edition, Honda Activa
6G, Honda Activa -I, Honda Activa 5G.
 Fuel Economy – 50 to 60 km/l
 Curb weight – 103 to 113kg

HISTORY
Honda began selling a new version of the Activa in the Indian market on 8 May 2009, with a
new 109 cc (6.7 cu in) engine. Honda said the Fuel economy was improved by 15%.
In April 2014, Honda began an upgraded model of Activa with a 125 cc (7.6 cu in) engine
and rebranded the model as Activa 125. Currently, both Activa-I and Activa 125 are sold in
India along with traditional Honda Activa.
Honda began selling the Activa-I in India, a cheaper and lighter version of the Activa, in
December 2013. It is powered by a 110 cc (6.7 cu in) engine. On September 22, 2015, Honda
announced that they had sold over 1 million Activas in five months in the Indian market,
from April to August.
Honda launched their 5th generation of Honda Activa in 2018, and the sixth-generation
Honda Activa 6G have been launched in India with prices starting at ₹ 63,912 (ex-
showroom, Delhi).

MILESTONES
In April, 2014, The Economics Times reported the Honda active to be the best-selling two-
wheeler in India, outselling the hero Splendor. During the month of September 2013, 141,996
Honda Activa scooters were sold, nearly equal to Honda's entire annual sales in North
America.
The 110cc Activa is the company's biggest seller, by far. It is responsible for over 2,00,000
sales units each month.
In November 2018, HMSI crossed the 2.5 crores sales mark in the scooter segment. It has
become the first company to reach this milestone and the biggest contributor to this massive
figure is the Honda Activa.
It took Honda 13 years to achieve the one crore sales figure, but it managed to add another
crore in the span of just three years. It then went on to achieve the next 50 lakhs in just one
year. Honda claims that it is now India's top scooter-selling brand, holding 57 percent of the
market share. Honda has also said that every second scooter sold in India is one of theirs.

DEMAND & SUPPLY OF HONDA ACTIVA

Demand
“A function where a consumer desire a good, which is supported by purchasing power is
known as demand.”
Demand for Activa.
• Activa is one of the leading scooters in Indian market since a decade.
• Its sales have been increasing from the day it sales started.
Demand Function
“Demand function is a mathematical function showing relationship between the quantity
demanded of a commodity and the factors influencing demand.”
It can be represented as: Dx = f (Px, Py, T, Y, A, Pp, Ep, U)

Supply
“A function where the quantity of the item that is produced and offered for sale is known as
supply”
Supply for Activa.
• When the plant of HMSI started in 2001 it manufactured 100,000* Activa per year.
• It supply have been increasing from the day it sales started.

Price
“Price is determined where the demand and supply meets at a common point know a
equilibrium point”
Price of Activa.
• The price of Activa is stagnant, it never fluctuated highly.
• Currently the price of Activa is INR 53,134.
• Which is in range of all the competing scooter.
• Price of related goods.
• The price of complimentary goods and the substitute goods affects the demand, as a
consumer can easily switch over to other related goods
• Expectation of future

To collect the information regarding demand and supply of

Honda Activa, I have conducted the survey regarding this. I
putted some questions to know about demand and supply of
Honda Activa. These are followings: -
 Why did you need arise to purchase moped?
 Why did you prefer Honda Activa?
 From where did you get reference or information of Honda Activa?
 Are you satisfied with the Honda Activa service?
 While purchasing Honda Activa which factors /features do you consider the most?
 Since how long you are using Honda Activa?
 What changes you require in available model?
 Will you prefer to purchase Honda Activa next time?
 Will you recommend to other to purchase Honda Activa?
 According to you, which is one of the best competitors of the Honda active?

The following information shows the result of survey :-

AGE

This pie chart shows the age group of respondents. According to the chart, more than 76.5%
pf the respondents belongs to 18-25-year category and around 23.5% belongs to age group of
25-35.

INCOME

This pie chart shows the income of the respondents. According to the chart, 31.3%
respondents come under 1lakh to 3lakh, 31.3% comes under 3lakh to 5 lakh, & 37.5% comes
under less than 1 lakh.
Reason for purchasing a moped

This pie chart tells that 41.2% respondents purchased moped just because it is easy to use,
17.6% respondents purchased moped just because it is easy to maintain, 29.4% respondents
have another reason, & rest 5.9% respondents think that they need it & it is easier than a bike.

Prefer Honda Activa

This pie chart tells that 35.3% respondents prefer this activa because it is easy to drive, 29.4%
thinks it gives good mileage, 23.5% prefer this Activa because of company’s image, & 11.8%
prefer Honda Activa because it is cheaper than other scooty.
Reference/ Information of Honda Activa

This chart tells that 70.6% respondents know about Activa from friends, 29.4% respondents
know about from relatives, 11.8% respondents know about from sales & mass media.

Satisfaction with the Honda Activa

This chart tells that 47.1% respondents are satisfied, 17.6% respondents are highly satisfied,
17.6% respondents are dissatisfied, & 11.8% are neither satisfied nor dissatisfied.
Factors or Features consider the most

This chart tells that 35.3% respondents consider engine efficiency, 35.3% consider look
(colour), 11.8% consider resale value, pickup & mileage/ average.

Using Honda Activa

This chart tells that 35.3% respondents using Activa from 1 to 3 years, 29.4% using from 6
months to 1 year, 17.6% using from less than 6 months, & 11.8% using from 3 to 6 year.
Prefer Honda Activa next time

This chart tells that 76.5% respondents prefer Activa next time, 17.6% respondents doesn’t
prefer Activa next time & 5.9% respondents can’t say.

Recommend to other for Honda Activa

This chart tells that 76.5% respondents recommend to other, & 23.5% respondents doesn’t
recommend to other.
Competitor of Honda Activa

This chart tells that 20% respondents thinks TVS is best competitior, & rest respondents
thinks Hero Honda pleasures, Hero maestro, Mahindra Duro, TVs jupitor, Vespa is the best
competitior.