Honda Cars sales in March sees dent due to chip shortage crisis
- Honda Cars India said that Covid-19, rise in price of raw materials and the ongoing chip crisis have contributed to what has been a ‘mixed bag’ for the carmaker last financial year.
Honda Cars India has registered a marginal seven percent decline in domestic sales in March. The Japanese carmaker has announced that it sold 6,589 units last month, compared to 7,103 units during the same month a year ago. However, exports have yielded good result for Honda as it clocked 2,243 units, which is more than double of 1,069 units in March last year.
Overall, Honda Cars India has registered a small hike in sales in the domestic market. Honda dispatched 85,609 units to Indian customers between April last year and March with a growth of 4.3 percent over 2020-21 financial year, when it sold 82,074 units. In the exports sector, Honda delivered a total of 19,401 units, which is almost four times more than 5,131 units in the previous fiscal.
Yuichi Murata, Director (Marketing and Sales) at Honda Cars India Limited, said that the last fiscal year has been a mixed bag for the industry. “Every quarter was punctuated with multiple challenges - from the pandemic to paucity, hike in raw material pricing and chip shortage. The industry, however, showed resilience and succeeded in restoring positivity in the market."
"We weren't isolated from these challenges and did feel the impact of the chip shortage. With market situation returning to normalcy after an extended tough period, the current situation looks stable paving the way for growth in future. We are entering this financial year with renewed energy and enthusiasm," he added.
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Honda currently sells four models in India, which include City and Amaze sedans, WR-V SUV and Jazz premium hatchback. The carmaker is going to launch the hybrid version of its flagship City sedan in the next few weeks. It is also expected to drive in a new compact SUV to the Indian markets later this year.
The launch of the Honda City Hybrid was earlier slated to take place in February this year. However, due to the Covid-19 pandemic and related complications, the launch had been deferred. While the unveiling will take place next month, the City Hybrid is expected to be launched in May.