In order to avoid long waiting periods, Honda has halted the production of the City sedan and is currently accommodating the recently launch Mobilio MPV in its place. The new Honda City has spearheaded the C2 segment sedan since launch, and Honda is optimistic, that even with a little delay in delivery periods, customers will wait for it.
The Mobilio and the City are produced at Honda’s Greater Noida facility. But due to limited production capacity, chances are, the waiting period starts running longer for the new product which is currently trying to gain traction in the market. With this decision, Honda is able to produce more units of the Mobilio and deliver them without much of a time lag. Another reason could be that the Mobilio is priced considerably higher than its competitors, and long waiting period could result in the buyer opting for a readily available and relatively cheaper product.
The Honda City is expected to go back in production probably by late September, 2014. Hence, those who have booked the car recently, or are planning to book it in the near future, don’t be surprised if you’re quoted a waiting period.
It is a surprising move by Honda to slow down the movement of their most established product now that the festive season is approaching.