Total sales of cars by Honda in India this year in February stands at 9,524 units. In February 2021, the car sales for Honda were around 10,311 units. It is clear that Honda underwent a decrease in YoY sales of around 7.6%. There was also a 23% decline in domestic sales. They managed to sell 7,187 units for February this year in comparison to 9,324 units sold in the same month last year.
Honda Cars Sales underwent decline: Why?
Honda cars also sold 12,149 vehicles in the month of January 2022. The automaker also had to overcome a very high monthly decline of 21.6%. The main reason for this is due to the ongoing shortage of semiconductor chips, which in turn has affected the production of vehicles for Honda. This crisis impacted dealers as well, as there was always a lag in production of the cars and also delivery.
The Marketing and Sales Director of Honda India, Yuichi Murata believes that the shortage in chips will likely continue to make a dent in the production and deliveries of the cars for a while. However, he also hopes that the issue will get sorted out as it will help in meeting the demand for the market effectively and efficiently.
The nationwide pandemic was also part of the reason for the overall fall in sales of Honda cars. Even though the Covid situation isn’t over, it has been improving daily. This is beneficial as markets are opening up and consumers in need are more than ready to purchase them. This will only help the industry and it is a positive indicator. However, exports from Honda witnessed a growth of 2.5 times in February this year. Moreover, Honda had exported 1,722 units in January 2022, wherein the growth percentage was almost at 36%.
1. Is Honda shutting down operations in India?
Honda motors have been smoothly conducting its operations in the country. Although, it announced a VRS (Voluntary Retirement Scheme) to halt production at the plant in Noida.
2. Is Honda making profits in India?
Revenue for the year 2021 fell by more than 11% up to Rs. 9,624 crore in the country. Honda motors expect to make a profit by the end of the fiscal year, i.e March 2022.