Due to the increasing popularity of SUVs and tough competition in the Indian automobile market, Honda Cars India Limited (HCIL) has faced a decline in sales. In February 2025, the company recorded a total sale of 10,323 units, which was 21.07% less than the 13,078 units sold in February 2024 last year. This decline was seen in both domestic and export markets, due to which the company is facing a big challenge.
Honda’s domestic sales decline in February 2025
Honda’s domestic sales have also declined drastically. In February 2025, the company sold only 5,616 units, while in February 2024 last year this figure was 7,142 units. That is, a decline of 21.37% was registered on an annual basis. If compared on a monthly basis, Honda sold 7,325 units in January 2025, while it dropped to 5,616 units in February. That is, 1,709 units less were sold in just one month, which shows a decline of 23.33%.
Honda’s exports also fell sharply
Honda’s sales remained weak not only in the domestic market but also in exports. In February 2025, the company exported a total of 4,707 units, while in February 2024 this figure was 5,936 units. That is, exports declined by 20.70% on an annual basis.
What is the reason for the decline in Honda’s sales
There can be many reasons for the decline in Honda’s sales. The biggest reason is believed to be the increasing demand for SUVs in the Indian market and Honda having limited options in this segment.
Increasing popularity of SUVs: Indian customers are now preferring SUVs with more space, better ground clearance and strong looks. But Honda currently has limited SUV models available, due to which the company is incurring losses.
Increasing competition: Companies like Tata, Mahindra, Hyundai and Maruti are constantly launching new and updated SUVs, due to which Honda’s market share is decreasing.
Lack of new models: Honda’s cars are known for excellent performance and reliable quality, but the company has not had many new models recently. This has shifted the attention of customers towards other brands.