Honda Car Sales Jan 2023
Honda Cars India January 2023 YoY domestic sales and exports decline; MoM sales growth
In the face of a decline in domestic market demand, Honda must take steps to overcome low sales volumes. A major boost could come from an expansion of the product portfolio. Currently, the Indian line-up includes Honda Jazz, Amaze, WRV, and a range of City sedans. Soon this will be further reduced, as Honda jazz, WRV and 4th-gen City will be discounted. Luckily these aren’t Honda’s major volume contributors. Honda Amaze wears that crown.
As far as new market entrants, 2023 Honda City facelift launch is expected in a few short months. The manufacturer has revealed the premiere of its all new SUV is scheduled for the summer of 2023. While Honda City e-HEV (electric hybrid) is sold here, the manufacturer hasn’t yet elaborated on its focus on electrification. While EVs are gaining popularity in India, there is currently no pure Honda electric car on the horizon.
Honda Cars India Sales Jan 2023
Honda Cars India reported a total of 9,255 units sold in January 2023. 7,821 units were sold domestically. 1,434 units were exported. This marks a decline of 2,894 units compared to the same period in the previous year, resulting in YoY decrease of 23.82% percent, down from 12,149 units.
Domestic sales saw a decline of 2,606 units compared to January 2022, leading to a YoY decrease of 25 percent. Sales were down from 10,427 units. Exports showed a decline of 288 units at YoY decrease of 16.72 percent. And fell to 1,434 units from 1,722 units. Exports accounted for 15.50 of the total sales in January 2023.
In terms of the monthly sales performance, Honda Cars India’s reported MoM compared to December 2022. MoM increase of 759 units resulted in a 10.75 percent growth. In comparison, YoY results were at a significant decline. The manufacturer’s sales performance in January 2023 raises concerns about domestic market demand for the company’s products.
Why Honda Cars India is discontinuing cars in Q1 2023
India will introduce Real Driving Emissions (RDE) norms on April 1, 2023, forcing Honda to discontinue half its product portfolio. Introduction of BSVI emission norms to be compliant with stricter regulations in April 2020 directly raised car prices. And adapting to RDE norms will do the same. Now vehicles will be tested under real-world driving conditions and automakers must upgrade engines to meet standards.
Discontinuing certain cars, particularly diesel vehicles using the LNT (lean NOx trap) emission control measure, is the most cost-effective solution. Upgrading to SCR (selective catalytic reduction) systems is not cost-effective for older cars. The SCR system, which is typically more expensive, converts NOx into nitrogen and water. LNT system, which is cheaper and simpler, only traps NOx and converts it into nitrogen.
RDE – ICE PV segment industry wide ramifications
RDE (Real Driving Emissions) aim to enhance air quality. These stringent norms require vehicles to undergo significant changes to reduce emissions. And manufacturers must invest in research and development to implement new technologies and make changes to their vehicles’ engines and exhaust systems. These changes will improve efficiency and performance. And boosts efforts to combat air pollution, improves quality of life for citizens, and protects the environment. RDE norms will have a substantial impact on car manufacturers in India, and the new cars that are launched. Striving for better standards drives the automotive industry to develop new technologies and innovations, and continually improve.
Yuichi Murata, Director, Marketing and Sales, Honda Cars India Ltd said, “Jan’23 volumes were in line with our expectations, as we are focusing on seamless transition of our line-up to the upcoming new emission norms under RDE regime. We are optimistic about our performance in 2023, fuelled by strong customer demand in the automotive sector.”
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