Honda Cars India reports hefty decline in May domestic sales amid pandemic woes

Honda Cars India witnessed a 78 per cent decline in its domestic sales in May at 2,032 units as compared to 9,072 units sold in April this year. Exports stood at 385 units last month. The company cited state-wide lockdowns throughout the month as the main reason that impacted its retail business.

The carmaker had also advanced its maintenance shutdown in the month of May as its Tapukara manufacturing facility in Rajasthan remained shut from May 7 till May 18. Its The annual maintenance block closure was originally scheduled for the middle of May. "Last month, we undertook extended maintenance-related shutdown of our factory leading to limited production but effectively breaking the chain amidst the high number of cases in north India," the company's Senior Vice President and Director - Marketing & Sales, Rajesh Goel said, as quoted by PTI.

Honda is optimistic that as the pace of vaccination increases and cases decline, markets will gradually reopen, allowing business continuity. The company plans to gauge consumer sentiment and on-ground situation over the time so that it can plan its production and supplies in coming months. "We will closely monitor the on-ground situation with our dealer partners to understand the consumer sentiment," Goel added. Apart from this, Honda's field teams are in constant touch with its waiting for customers to facilitate their car purchases through digital mediums.

Contributing to India's fight against the second wave of the pandemic, the manufacturer's CSR arm - Honda India Foundation - donated a relief package worth ₹6.5 crore. It offered Covid-19 support and relief measures in states like Haryana, Rajasthan, Uttar Pradesh and Gujarat. The company also promised to set up oxygen production plants at four different locations - Kolar in Karnataka, Gautam Budh Nagar in Uttar Pradesh, Alwar in Rajasthan and Manesar in Haryana, as part of the initiative.