One would think soaring prices of cars, in addition to petrol prices going through the roof together with shrinking pockets of consumers, would have contributed to a rise in motorcycle sales. Urban traffic jams and car drivers may not believe it, but FY24 was not the year for the motorcycle industry. In FY24, volumes shrank to their 8-year lows; down 4 percent year on year, and 39 percent compared to the industry peak during FY21. Perhaps, consumption patterns swirled toward the used market. For one motorcycle manufacturer though, there was still much to celebrate.

During the fiscal year, passenger cars together with LCVs and SUVs saw volumes go down by 18 percent compared to FY23 and by 63 percent compared to FY22—which happened to be the year when the industry hit its highest volumes yet. The industry had its lowest sales during FY24 since 2009. Motorcycle volumes did not decline as much by comparison, but the downward trend remained visibly unpromising for the industry.

Several Chinese motorcycle assemblers suffered, leaving Honda to carve an even greater space in a market where it already dominated. For one, supply-side constraints restricted imports of parts and kits necessary for assembly which brought major pain to motorcycle players. Honda with a substantial localization level was able to swerve past rather unscathed. During the fiscal year, volumes declined only 0.2 percent. For its financial year performance ending Mar-24, the company earned Rs9.7 billion in after-tax profits, up 94 percent compared to MY23. That’s impressive, given that revenue grew 18 percent and volumes during this period declined by 14 percent. A sufficient increase in prices did the trick.

According to the company’s annual report, attractive pre-crop credit and exchange offers by dealers ensured a stable customer flow for Honda. In fact, the management believes next year will be different for the industry and demand will be driven by agricultural growth, remittances, and consumers’ needs for fuel-efficient and low-cost travel options. Honda certainly seems poised to capture this growth.

With affordable installment options widely available, if demand drivers do pan out, motorcycles of all brands will find a market for themselves; though Honda may still reign supreme by a wide margin as it continues to enjoy a certain reputation in the market that takes time to earn. Time Honda has put in. What that means for the environment, commute quality, road congestions, road safety, commuter safety, especially for urban populations—well, that is a conversation we are not ready to have just yet.