Honda Cars India reports decline in domestic sales in November 2021; Exports stand at 1,447 units
While production output is being prioritized, supply chain constraints result in less than optimal production output. Honda Cars India reported domestic sales of 5,457 units in November 2021. The YoY decline stood at 45.38 per cent on a volume loss of 4.5k units.
Sales a year ago were reported to be 9,990 units and exports were 31 units. Exports increased to 1,447 units in November 2021. With the increase in exports, total sales are reported to be over 6.9k units in November. Honda sells the fourth generation City, fifth generation City, Amaze, WR-V and Jazz in India.
Production constraints have slashed production from 10k units to almost half. HCIL faced chip shortage in November by resorting to non-production days. A decline of 32.70 percent has been registered in the sale of MoM. Volume loss has been recorded at 2,651 units from 8,108 units in October 2021.
Non-production dates in November 2021
Rajesh Goel, Senior Vice President and Director-Marketing & Sales, Honda Cars India Ltd. said, “Despite persistent demand in the market, supply-side issues due to global chip shortage continue to be a concern. 21 had to resort to non-production days.
We have been selling our entire production stock during the last few months and making every effort to meet the market demand.” With Rajesh Goyal resigning from HCIL in December 2021, Yuichi Murata has been appointed Director, Marketing and Sales of Honda Cars India Limited.
low auto dispatch
There is little clarity on when supply chain disruptions will be more manageable. Till then, production output can be expected to remain below normal. This can be extended for the next few months. Production constraints mean that manufacturers are unable to meet current demand. This is being controlled through longer delivery date estimates to bridge the supply-demand gap.
At the same time, manufacturers are revising the new vehicle launch dates. With a production schedule, it’s best to squeeze the system in more. At present, all the attention is focused on timely procurement to expedite the production schedule.
While there has been some growth in a few months, for the most part the hurdles have been around for about 20 months now. While production in 2020 was largely impacted by the COVID-19 lockdown restrictions, in recent months, global chip shortages have hampered production, and thus dispatch. Industry trends see a fair number of manufacturers working with low dispatches.