Honda Cars India sales slump 25% in October amid chip crisis

Honda Cars India Ltd (HCIL) on Monday has reported that its domestic sales in October registered a 25 per cent year-on-year dip at 8,108 units. The automaker registered 10,836 units in the same month a year ago.

However, export numbers for the automaker have increased in October 2021. The Japanese automaker shipped 1,747 units last month as compared to 84 units in the same month in 2020.

The slump in sales comes amid the ongoing microchip crisis that has been impacting the entire auto industry adversely. Also, despite the festive season and upbeat consumer sentiment, Honda was unable to swing the mood into better sales numbers.

Speaking about the sales performance in October, Rajesh Goel, Senior Vice President and Director, Honda Cars India, said that the festive purchases kept pace with last year and continues to show good momentum. "Our factory despatches during October 2021 increased by 20 per cent as compared to September 2021, and we were able to wholesale our entire factory stock of the month," he further said.

Rajesh Goel also added that the current situation in the auto industry is dynamic due to the ongoing supply chain disruptions, but Honda Cars India is making all possible efforts to maintain a steady delivery pace and cater to the market demand effectively.

The chip crisis impact on sales numbers is not the only case for Honda Cars India, but several other automakers as well. The supply chain disruption taking place due to chip shortage is hurting sales and delivery of the majority of vehicle manufacturers, despite the OEMs witnessing a high demand from the consumers.

As the majority of the modern vehicles rely on microchips, the non-availability of those chips is forcing automakers to produce vehicles at a slow pace, resulting in longer delivery periods and slow sales numbers.