Car sales figures for the month of May do not seem to be looking great for a number of companies, including Honda Cars India. The company managed to sell just 2,032 unit in May, which is substantially less compared to the figure they achieved last month.
In April 2021, Honda managed to sell 9,072 units which means that they suffered a massive 77 per cent reduction in May. This is in-line with sales reports from other car manufacturers like Maruti Suzuki, Tata, Hyundai, Mahindra and many more. The export figures stood at a mere 385 units as well. Although, things are not as bad as they were in May last year when the company sold just 375 units in the domestic market.
Commenting on the business situation in May 2021, Rajesh Goel, Sr. vice president and director, Marketing & Sales, Honda Cars India Ltd said, “Multiple state-wide lockdowns throughout the country to control the spike in COVID-19 infections in May 2021 impacted retail business. During last month, we also undertook extended maintenance related shutdown of our factory leading to limited production but effectively breaking the chain amidst high number of cases in north India. With increase in pace of vaccination and the declining cases, we expect markets will open gradually allowing business continuity.” “Our field teams are in constant touch with our waiting customers and prospects to facilitate their car purchase through digital mediums. We will closely monitor the on ground situation with our dealer partners to understand the consumer sentiment and accordingly plan our production and supplies in coming months.”
It is clear from the company’s statement that the recent lockdowns have dampened the enthusiasm of people when it comes to buying new cars. Many states have continued to extend lockdowns and movement is restricted which has led to lower car sales. Not only this, but a number of car manufacturers, including Honda Cars India, decided to temporarily close operations in order to slow down the spread of the virus. Honda’s plant in Rajasthan was shut from May 7 to 18, 2021.
However, the company does plan to reach customers via the online route. Making vehicle purchases digitized can prove to be a boon at a time like this. Honda currently sells five vehicles in India including Amaze, 4th Gen City, 5th Gen City, WR-V and Jazz.
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