EV setback: Honda stops production of Activa e, QC1 electric scooters due to poor sales

Honda Motorcycle & Scooter India (HMSI) has stopped manufacturing its Activa e and QC1 electric scooters since August 2025, citing poor sales and large inventory overhangs. Between February and July 2025, Honda produced 11,168 units of these models but managed to sell only 5,201 units, leaving nearly half the inventory unsold. The Activa e, in particular, underperformed with just 740 units sold in six months, representing a tiny fraction of overall sales.

Limited infrastructure has been a notable barrier to wider adoption. The Activa e is sold only in Bengaluru, Mumbai, and Delhi, where Honda has established battery swapping stations, forcing customers to rely exclusively on this network without the option of home charging. In contrast, the QC1, equipped with a home-chargeable battery and priced more affordably at ₹90,000, was available in six cities but still failed to achieve strong sales momentum.

Honda’s entry into the growing Indian electric two-wheeler market has been challenging, especially against established competitors TVS and Bajaj Auto. TVS’ iQube and Bajaj’s Chetak have posted record sales, with TVS recently crossing 700,000 units sold and Bajaj reclaiming market leadership in October 2025 with over 31,000 units sold. Compared to these rivals, Honda’s electric models offered modest performance and limited range at similar price points, pushing the company to halt production and possibly reassess its EV strategy in India.

The halt in production signals a cautious approach by Honda in the face of infrastructural challenges and tough competition. Whether production will resume with revamped products or improved infrastructure remains to be seen as the company evaluates its position in India’s fast-evolving electric scooter market.