Honda Motor’s 2019 Sales Decline Over 20% Percent in India

Honda Motor has been seeing declining sales in India. In 2019, Honda’s automobile sales dropped for the second consecutive year. Diminishing sales are attributed to the slowing of the Indian economy and Honda’s focus on revising its product lineup to meet BS6 emission standards. Sales are expected to drop in 2020 as well due to the new coronavirus which forced temporary suspension of production and postponement of product launches.

In 2019, Honda’s vehicle sales in India fell 22.9% year-on-year to 135,000 units, market share falling 0.7pp to 4.8%. Of which, passenger car sales declined 14.9% to 111,000 units, market share falling 0.3pp to 6.1%. Although the new Amaze, launched in May 2018, increased slightly and the new Civic, released in March 2019, added some 5,000 units to the total, they could not cover the sharp decline of other models. Utility vehicles fell 46.4% to 24,000 units, market share going down 2.3pp to 2.4%.

Although the new CR-V, launched in October 2018, increased over 70%, the volume-selling WR-V and BR-V dropped over 45% and 60% respectively. Production of the BR-V, which has not been planned to receive upgrade to be compatible with India’s new BS6 emission regulation, was discontinued at the end of July 2019.

In 2020, all models will be upgraded to meet BS6 emission regulations. By the end of 2019, the CR-V, Civic and City (gasoline) were compatible BS6.

BS6-compliant Amaze was released with both gasoline and In January 2020, the diesel engine. The Amaze is Honda’s first diesel model which meets BS6 regulations.

Honda began taking advance orders of the BS6-compliant WR-V in March 2020 and teaser advertising of the Jazz started in the following month. According to some reports, the new City was expected to be launched in April 2020, but its release was postponed due to the impact of the new coronavirus.

Honda Motor: Recent Business Developments in India

Sales in FY ending March 2020

・Automobile sales in FY April 2019 through to March 2020 dropped 44.5% year-on-year to 102,016 units. – It was a tough year for the automobile industry due to the economic downturn, credit crunch by financial institutions and declining consumer confidence. In addition, BS6 emission regulation was introduced in India in April 2020. – In September 2019, the annual sales target (unannounced) was revised downward to reduce the burden on dealers.

Reduction of production due to the new coronavirus

・In March 2020, Indian authorities temporarily stopped production of the Great Noida plant (Uttar Pradesh state) and the Tapukara plant (Rajasthan state) from March 23, 2020 to March 31, 2020 due to the new coronavirus pandemic.

Responding to BS6 emission regulation

・From January 2020, only BS6-compliant vehicles will be sold wholesale. – Wholesale sales of BS4-compatible vehicles ended in December 2019. – The CR-V (gasoline), launched in June 2018, and the Civic (gasoline), released in March 2019, are both BS6 compliant. – The CR-V (gasoline), launched in June 2018, and the Civic (gasoline), released in March 2019, are both BS6 compliant. ・In December 2019, the BS6-compliant City (gasoline) was launched. – India’s first midsize sedan that is compatible with BS6. – Sold for 991,000–1,431,000 INR (Ex-showroom Delhi). – The diesel version is also expected to be BS6 compliant in the future. ・In January 2020, the BS6-compliant Amaze was released with both gasoline and diesel engine. – The Amaze is Honda’s first diesel model which meets BS6 regulations. – The 1.2L version is sold for 609,900–875,900 INR and the 1.5L model is sold for 755,900–995,000 INR (Ex-showroom Delhi). ・In March 2020, Honda began taking advance orders of the BS6-compliant WR-V. – Available with 1.2L gasoline engine and 1.5L diesel engine. – Reservation fee is 21,000 INR. ・The BS6-compliant Jazz is expected to be launched after April 2020. – Teaser advertising started in April 2020. Although details have not been announced, it is said that the Jazz will only receive a facelift.

New model

・The new City small sedan (8th generation) is expected to be launched after April 2020. – According to some reports, it was expected to be launched in April 2020, but its release was postponed due to the impact of the new coronavirus. – Rival models are the Maruti Suzuki Ciaz and Hyundai Verna among others.

Production of BR-V discontinued

・Honda discontinued production of the BR-V SUV by the end of July 2019. – Not compatible with BS6. – The BR-V was launched in 2016 as an alternative to the Mobilio, but its sales were sluggish. It is said that the low price competitiveness and the low level of specifications such as installing CVT only in gasoline models were the reasons for the sluggish sales.

Sales network

・Honda has announced that it would introduce a new corporate identity at all of its shops in India. – The automaker will introduce iWorkshop, a digital workshop management system that integrates key workshop processes into a simple and intuitive solution using the latest technology. – Shops have a high-impact logo design. It features a large red entry pole. – The undertaking will cost 2.7 billion INR. – As of February 2019, Honda has 350 dealerships in 239 cities in India.

Cooperation

・In September 2019, Honda announced that it will partner with an Indian subsidiary of ORIX Rent-A-Car in the field of automobile leasing services in India. – Offering services for corporations and individuals. – Vehicle models used for the service are the CR-V, City and Civic. – Services such as insurance and maintenance are also planned to be provided in accordance with user needs. (Created using Honda Motor’s PR materials and various media sources)

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