Honda Cars sales are going downward in India because of fewer good car options in its portfolio. Currently, in India, Honda offers Jazz, Amaze, WRV, and City sedans. Most of the company’s sales come from Honda Amaze. Soon this small 4-car portfolio of Honda will become smaller because Honda will discontinue the Jazz, WRV, and 4th-gen City in a couple of months. If Honda wants to bring back its glory days in India, then the company has to launch some good cars after researching the demand of the Indian car market. Currently, the SUV segment is the most in-demand segment in India and the EVs are on a rise too. According to Honda officials, the company will soon launch a new SUV in the Indian market with high hopes. Honda is also going to launch the 2023 facelift of the popular Honda City in a few months.
Honda Cars in Jan 2023 sold a total of 9,255 units. This number includes domestically sold and exported units. 7,821 units were sold domestically and 1,434 units were exported. Honda Cars registered a YoY sales decline of 2,894 units or 23.82 percent from 12,149 units (domestic + exported) sold in Jan 2022. If we look at the Jan 2023 domestic sales of Honda Cars then we will see a YoY sales decline of 2,606 units or 25 percent from 10,427 units sold in Jan 2022. The Jan 2023 export number of Honda Cars also shows a YoY decline of 288 units or 16.72 percent from 1,722 units sold in Jan 2022. In Jan 2023, 15.50 percent of sales of Honda Cars India came from exports.
The YoY sales of Honda Cars are declining but the MoM sales have increased 10.75 percent from only 8,496 units sold in Dec 2022. Honda’s January 2023 sales figures raise questions about the level of demand for its car in the domestic market.
On April 1, 2023, India will implement Real Driving Emissions (RDE) guidelines that will require Honda to discontinue more than half of its product line. In April 2022, after the implementation of the BSIV emission norms, car prices were immediately increased by the companies and the same will happen after the implementation of the RDE guidelines. Vehicles will now be put through real-world driving tests, and automakers will need to modify their engines to comply with the new criteria.
The most cost-effective option is to discontinue the low-selling vehicles, especially diesel ones that use the LNT (lean NOx trap) emission control device. For older vehicles, switching to SCR (selective catalytic reduction) systems is not financially efficient. The more expensive SCR system transforms NOx into nitrogen and water. The LNT system, which is less complicated and less expensive, only traps NOx and turns it into nitrogen.
Real Driving Emissions (RDE) motive is to improve the quality of the air. Companies must make considerable adjustments to their vehicles to cut emissions in order to comply with these new strict standards. Additionally, manufacturers must spend money on R&D to incorporate new technologies and alter the exhaust and engine systems of their vehicles. Efficiency and performance will both be improved because of these adjustments and most importantly it supports the efforts to reduce air pollution, raises citizen quality of life, and safeguards the environment. The new cars that are introduced in India and the car makers here will both be significantly impacted by RDE requirements. Due to this the automobile industry is driven to create new technologies and innovations and to always improve in the pursuit of higher standards. Director of Marketing and Sales at Honda Cars India Ltd, Yuichi Murata, said, “Jan’23 volumes were in line with our expectations, as we are focusing on the seamless transition of our line-up to the upcoming new emission norms under the RDE regime. We are optimistic about our performance in 2023, fuelled by strong customer demand in the automotive sector.”
