Honda Cars India May Fail to Meet FY2017 Sales Target

Honda could fail to meet FY2017 sales target of three lakh units as company struggles with recent demand for petrol vehicles

Honda BRV (BR-V) India14

Honda Cars India is more likely to miss the sales target set three years ago. The Japanese manufacturer is enduring a tough tenure in the domestic market with only the City and Amaze sedans doing good numbers. Honda registered the highest ever domestic sales with 1,79,816 units at an overall growth of 67 per cent in 2014 which was contrary to the following year.

The Japanese auto maker reaped the benefits of the two new launches – City and Mobilio in 2014 – but the latter MPV had a dismal 2015. Its sales was recorded at only 5 per cent in December 2015 of what it managed to achieve at the same time the previous year. The Brio small hatchback entered India with loads of expectations carried on its shoulders but slowly dwindled due to the value-for-money offerings from traditional competitors Maruti Suzuki and Hyundai in its segment.

Honda City India 2015

The new-generation Jazz announced the re-entry of the premium hatchback after years of hiatus following the company deciding to discontinue the product citing poor sales back in 2013. Whilst it has lived up to its potential initially by registering 6,600 units in the first full-month of its launch in July 2015, Honda couldn’t manage to stay put the same hype in the following months as it became yet another product with dropping sales.

The introduction of i-DTEC diesel engine into the Indian market which served its purpose of enticing customers towards the Jazz as well can be said as one of the main reasons for the success. But the buyers’ preference of petrol vehicles lately has hit back at them quite severely. As a result, the target of reaching three-lakh units of sales by FY2017 has become a distant reality.

Honda Jazz India

ET Auto reports that some of its trusted sources said the brand the production plan for the current financial term has been set between 2.45 lakh and 2.5 lakh vehicles – more than 50,000 units falling short of the initial target. Honda’s recently appointed CEO, Yoichiro Ueno, has defended by stating that the target was planned before the additional infrastructure cess tax on diesel vehicles was levied. Honda is relying heavily on the sales of the newly launched BR-V SUV to bring double digit market growth.

Follow us on Facebook, Twitter & on Youtube