Honda Cars India has registered a strong decline in sales in February 2022. The domestic sales fell down to just 7,187 units, registering a Y-o-Y sales decline of approximately 23 per cent.
This is surprising considering the Japanese automotive giant showed promising performance by registering 10,427 unit sales in January 2022. This means the domestic car sales of Honda Cars fell by almost 31 per cent when compared to the company’s sales in January 2022.
However, Honda has shown almost 137 per cent Y-o-Y growth in exports in February 2022. This indicates, strong demand for Honda cars in International markets. Moreover, the M-o-M exports have also increased in February 2022 by 35 per cent by registering 987 units in export.
Recently, the Indian automobile market has been witnessing a lot of ups and downs as the automotive manufacturers tackle pandemic related sales slump and production constraints. On top of that, the shortage of semiconductors has also affected the automobile industry as manufacturers struggle to complete production.
At present, Honda’s product portfolio in India consists of five models – Honda Amaze sub-4m sedan, Honda Jazz premium hatchback, Honda WR-V compact SUV, Honda City 4th Generation and Honda City 5th Generation.
Though Honda has the product lineup focused at the mass market unlike Toyota, the competition in the segment is too tough for any manufacturer to focus at once and this is hurting the chances of Honda’s market share.
Moreover, Honda’s current product portfolio lacks an SUV model and the brand may consider launching the HR-V in the coming years.
Speaking about the Honda HR-V, the SUV has always been a decent and practical 5-seater SUV for a small family. Moreover, the latest update brings a lot more style to this equation and adds a bit more desirability with its sharper styling.
All these factors add up and seem ideal for Honda to launch the Honda HR-V in India. Moreover, the lack of SUVs in Honda’s current product portfolio is clearly visible as the sales have dwindled down over the years.
However, since the Indian automobile market is highly sensitive to pricing, Honda must have a solid plan to produce the HR-V with a high level of localisation to keep the overall production cost down.
Thoughts About Honda Cars Sales Performance In India
Despite India being a very price-sensitive market, Honda has always tried to position itself at a premium over its competitors. While this has accounted for Honda building up a more premium image in the market, the sales have slowly reduced as competitors have captured the masses with lower pricing and a strong product portfolio.
Keyword: Honda Registers Decline In Sales: Just 7,187 Units Sold In February 2022