Honda has been one of the top vehicle makers in the globe. The company has always evolved new technology in terms of its vehicles. The company is best known for its vintage and luxurious range of cars. Majorly admired for the top class SUVs, Honda has been a classic creator of vehicles throughout the world.
However, the recent sales result of the company seemed not in favor of its creation as per Honda's official estimation. The company registered a remarkable loss in the present fiscal than its results of sales of the last year. Honda's Indian holding, also known as Honda Cars India, officially reported a decline of 18.82 percent in its domestic sales in the month of September 2018.
The company holds a huge stake in its overall business in South-east Asia. In the region, India has been a major market for Honda, where it sales various mid-range vehicles as well as luxurious cars.
According to MoneyControl, Honda Cars India sold approximately 14,820 units of vehicles in September 2018 which is nearly 20 percent less than its last year's context. In September 2017, Honda marketed 18,257 units in the domestic sectors, as per the official statement.
While analyzing this decrement in terms of sales, Senior Vice President and Director of Sales and Marketing Department for Honda Cars India Ltd.: Rajesh Goel stated: "The subdued market sentiment combined with higher base of September 2017 and onset of Shradh period in Northern India from last week resulted in lower sales in September compared to last year."
As per The Economic Times, Goel further added that the company rationalized the wholesale dispatches in September, this year, in order to keep the dealer stock within its norms. However, a number of stock analysts and vehicle specialists, have had a different opinion while justifying the loss in sales faced by Honda.
As per their analysis, Honda is facing this decrement due to the superlative advent of small-scale car manufacturers in South-East Asia. Also, the increment of App-based Cab service providers in Asian countries is causing a major part of this decrement in car selling throughout the region as many individuals who were once interested in buying cars are now sticking to the services provided by the App cabs.
However, Honda also stated that it saw a considerable hike of 3.5 percent in the first six months' sales in the current fiscal. It approximately sold 94,419 units in this period in comparison to its last year's first phase sales statement of 91,269 units.
