Honda sales sinking

Discussion in 'Indian Automotive Scene' started by Dhillon, Dec 4, 2011.

  1. Dhillon

    Dhillon Administrator Staff Member

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    Honda Siel Cars India Ltd seems to have housed a guest, which goes by the name of 'Murphy.' Since the start of this year, everything has been going wrong for the Japanese auto giant. Just when the company was recovering from the production slide caused by the March 2011 tsunami in northeastern Japan that wiped out six plants and component suppliers, another disaster struck with the onset of floods in Thailand in November 2011. The catastrophe has put Honda's vehicle production behind by five months, forcing the company to abandon its earning forecast for this year.

    The shortage of components has affected all the models sold in India, but the impact is more on the Honda Brio, Jazz and City because of their larger volumes and popularity in the Indian market. The Honda City has taken a hit from 3376 units sold in October to a mere 652 units being sold in November. The small cars, Jazz and Brio managed to score sales of 382 and 666 units for the company respectively.

    The Japanese car maker is now trying to make alternate arrangements to source components from China and Japan and until the situation returns to normalcy, only five per cent of Honda's production capacity will be kept active. The production of the City has already been brought to a halt and it is likely that the Honda Brio will also get a time out soon.

    Honda recorded total sales of 1982 units in November, which includes 161 units of Honda Civic, 91 units of the Honda Accord and 30 units of Honda CR-V.
     

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