In July 2023, Honda encountered a notable decline in car sales. The total units sold amounted to 5,976. This reflects a substantial drop of 32.76 per cent compared to the same month in 2022. This is during which 8,888 units were sold. This sharp decrease underscores the challenging market conditions faced by the company. Year-on-year domestic sales also suffered a significant setback. The figures plummeted by 1,920 units and represented a substantial decline of 28.30 per cent in growth. This considerable reduction in sales growth is a matter of concern, especially considering the recent launch of an updated Honda City. Nevertheless, Honda Cars India currently boasts a product portfolio that’s limited in scope.
Furthermore, when comparing the sales figures between June 2023 and July 2023, a smaller yet still worrisome decline of 4.25 per cent or 216 units. Month-over-month domestic sales dipped from 5,080 units, indicating a potential ongoing trend of dwindling sales. Honda is evidently in the process of formulating strategies to counter this decline, and one approach is the imminent launch of the Honda Elevate SUV.
A closer examination of the data also reveals the disparity between Honda’s domestic sales and its exports. In July 2023, domestic sales reached 4,864 units. This is a stark contrast to the same period in the previous year, during which 6,784 units were sold. This translates to a significant 28.30 per cent decline in the domestic market. Thus highlighting potential challenges on the domestic front. The export scenario presents a similar tale, with Honda shipping 1,112 units in July 2023, notably fewer than the 2,104 units exported in July 2022. This substantial drop of 47.15 per cent in export sales signifies potential struggles in international markets as well.
Overall, the combined total sales volume, encompassing both domestic and export sales, experienced a decline of 2,912 units in July 2023 compared to July 2022. This pretty much speaks to the overarching struggle Honda faces in maintaining its market standing both domestically and abroad.
Also Read: Honda begins production of mid-size SUV Elevate in India