Copyright FOURIN, Inc. 2022
Honda Motor Revamps Vehicle and Engine Lineups in India
Honda Motor’s business in India has been sluggish. The automaker’s product strategy was working in the first half of the 2010s but has been in a general decline since reaching its peak sales level in 2015. The introduction of stricter emission regulations, which primarily affect diesel vehicles, has led to sluggish sales. For this reason, Honda is in the process of reviewing its product lineup and engine development.
Honda's vehicle sales in India from January to April 2020 fell 73.0% year-on-year to 16,000 units. The decrease in sales accompanying the intensive product replacement to comply with the exhaust gas regulation BS6, which started to be applied in April 2020, was overlapped with the lockdown for the new coronavirus, which spurred the decrease in sales. Shrinking sales were caused by the introduction of BS4 emission standard coupled with the outbreak of the new coronavirus.
In order to comply with BS6 regulations, Honda’s core product the Amaze among other models have been made BS6 compatible while poorly performing models were pulled from the market. As of July 2020, there were five BS6-compatible models on the market namely the Amaze, 4th-gen City (gasoline only), Civic, CR-V (gasoline only) and WR-V. Another five BS6-compatible models are scheduled to be released in the future namely the 5th-gen City, Jazz (gasoline only), 4th-gen City (diesel) and CR-V (diesel).
Honda launched the new City in July 2020 after undergoing full-model change. Another core model the Jazz is scheduled to be revamped and released in the first half of 2021. The two models are expected to improve Honda’s sales in India.