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The Indian two-wheeler industry was the second largest in the world as far as sales and volumes were concerned. The industry saw consistent growth in sales in the month of June 2016, as the timely onset of monsoon rains in various parts of India revitalised the purchasing power of people, mostly in rural and semi-urban areas, where two-wheelers were more in demand. People also had higher disposable income owing to hike in salaries of government employees. In addition, the general outlook of people had changed as most of them in all age groups and genders preferred scooters as more reliable and safe vehicle over motorcycles. Unlike the usual trend of motorcycles, the popular scooter 'Activa', manufactured by Honda Motorcycle & Scooter India (HMSI/Honda), had surpassed the conventional best-selling motorcycle Hero MotoCorp's Splendor, in sales. It was for the first time that an automatic scooter had broken the monopoly of motorcycles dominating the market by being the highest-selling two-wheeler between January-June 2016. The company officials stated that Activa's sales were at par with 15% of the overall two-wheeler industry in India. However, with Activa leading the comeback, the trend indicated the demand for scooters had revived from the phase when scooter seemed to have no future. While HMSI offered newer variants of Activa, other scooter manufacturers such as Bajaj, TVS and Hero MotoCorp also offered improved models of scooters. As manufacturers braced up for fierce competition, it was apparent that HMSI had to be careful with its strategies. On this note, whether Honda's scooter strategy with Activa would be successful remained uncertain.