4 days ago
- Automotive
- Hindustan Times
Honda Cars India sees May sales slowdown, eyes recovery with improved market conditions
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Honda Cars India Ltd. has announced that it sold 5,985 vehicles in May 2025, including 3,950 in the domestic market and 2,035 in international markets. The figures reflect a cautious posture for Honda in the current market environment with regard to supply and distribution.
It's worth noting in May that Honda's sales figures for May 2025 are weak compared to the same time last year. In May 2024, Honda Cars India sold 4,822 cars in the domestic market and 6,521 vehicles in the international market, which means Honda's year-over-year declines in both markets.
The automaker faces challenges related to a number of economic headwinds and a depressed consumer confidence. The carmaker said that it implemented a cautious dispatch strategy in May. By controlling the number of vehicles shipped to the dealerships, Honda Cars India was able to control dealer inventories and prevent oversupply in a very uncertain sales environment.
Also Read : Honda Amaze: The sedan that refuses to shout, but quietly delivers
Kunal Behl, Vice President of Marketing and Sales at Honda Cars India Ltd., addressed the company's approach: 'Given the prevailing market sentiment, we deliberately maintained a conservative dispatch volume to manage inventories efficiently across our dealer network. At the same time, we remain hopeful that an improved monsoon season will stimulate retail demand in the coming months."
Despite the current slowdown, Honda Cars India is optimistic about the future. Given the forecasts for a better-than-usual monsoon season—often a key driver of rural and semi-urban demand— the company anticipates retail momentum to build as conditions improve. The maker will likely also be preparing the new product updates and refreshed operating strategy to strengthen its presence in the competitive Indian car market. Honda's increasing focus towards hybrids
During the month, Toshihiro Mibe, CEO, Honda Motor Company, stated that the company intends to cut back on investments in electrification and put its focus on hybrid vehicles in the immediate future followed by a desire to go electric long-term. He called the move "a course correction" rather than a shift in long-term vision.
Also Read : Honda scales back EV goals, shifts focus to hybrids amid global EV slowdown
He emphasized that Honda is still committed to electrification but is now delaying that transition to respond to current market realities. The new strategy means that Honda will be more aggressive in the hybrid area and will increase production in markets where EV sales have not been as strong.
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First Published Date: 02 Jun 2025, 11:41 AM IST
