Honda July 2023 Sales Slump – Is it a Bumpy Ride Ahead or Could HCIL Ride the Storm with Resilience
Honda’s total car sales in July 2023 amounted to 5,976 units. A sharp decline of 32.76 percent compared to July 2022, when they sold 8,888 units. This drastic drop in sales indicates a challenging market situation for the company. YoY domestic sales decreased by 1,920 units to represent a significant 28.30 percent decrease in growth.
This substantial decrease is a cause for concern. Especially concerning since an updated Honda City was launched quite recently. But then again, Honda Cars India currently has a product portfolio that’s smaller than small.
Driving Forward: Honda Needs a Sales Revival Strategy
Furthermore, a comparison between June 2023 and July 2023 sales shows a smaller but still concerning decrease of 4.25 percent or 216 units. MoM domestic sales is down from 5,080 units. Monthly decline might indicate a continuing trend of declining sales. Honda would be hard at work devising effective strategies for recovery. One way forward is the soon to be Honda Elevate SUV launch.
The data also sheds light on the performance of Honda’s domestic sales versus exports. In July 2023, domestic sales stood at 4,864 units, a stark contrast to the same period last year, when they sold 6,784 units. This translates to a significant decline of 28.30 percent in the domestic market. And points to potential challenges.
International Blues: Honda’s July 2023 Export Struggles
Looking at exports, Honda shipped 1,112 units in July 2023, which is notably lower than the 2,104 units exported in July 2022. A substantial decrease of 47.15 percent in export sales reflects potential struggles in international markets as well.
Total sales volume, which comprises both domestic and export sales, witnessed a decline of 2,912 units in July 2023 compared to July 2022. And highlights the company’s overall struggle to maintain its market position both at home and abroad.
Anticipating Honda Elevate launch
Yuichi Murata, Director, Marketing and Sales, Honda Cars India Ltd said, “We have witnessed a positive demand trend in July’23 with our two strong models, the City and Amaze continuing to perform well in their segments. Adding to this has been our new offering the Elevate which has generated a lot of interest in the market since its global unveil.
The Elevate production has started from end of July and we will soon begin the despatches from the factory. We are confident that this much awaited SUV will develop as a strong pillar to drive the demand trend for HCIL, fostering its growth and bringing festive cheer to the industry at its launch.”
