Honda Two-Wheeler Sales Drop Below 60,000

Faced with multiple lockdowns across several states as India battles a deadly second wave of the COVID-19 pandemic, the automobile industry is under pressure. Honda Motorcycle and Scooter India (HMSI) recorded sales of just 58,168 two-wheelers in May 2021, a drop of over 79 per cent from 2,83,045 units in April 2021. In the domestic market, Honda despatched 38,763 two-wheelers while exports accounted for 19,405 two-wheelers. While Honda has announced restart of manufacturing operations at its plants, production for the next few months, as well as despatches, are likely to be below the usual average.

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Honda announces resumption of manufacturing at all four plants

“May 2021 witnessed further slowdown in sales momentum with close to 80 per cent of the network being non-operational due to local lockdowns. The situation on the ground is very dynamic with weekly announcement of lockdown extensions. We are closely monitoring the situation and with some relaxation in economic activities visible across towns as per new guidelines, we are optimistic on gradual resumption in our dealership operations, at the same time caring for the safety and convenience of our customers. Moving forward, we shall be aligning our production to meet the market demand accordingly,” said Yadvinder Singh Guleria, Director, Sales and Marketing, Honda Motorcycle and Scooter India.

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HMSI production will be aligned with market demand for the next four months, even as several states are still under lockdown

In late May 2021, Honda announced resumption of staggered operation at its manufacturing plants after temporarily halting operations at all four plants in the middle of the second wave of the COVID-19 pandemic. The shutdown period was utilised by advancing annual plant maintenance activities, HMSI said in a statement. Production at all its plants, including Haryana, Rajasthan, Gujarat and Karnataka, have been resumed following all COVID-19 compliance and lockdown guidelines by the respective state governments, the company said.

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In May 2021, Honda announced extension of warranty and free service benefits till July 31, 2021, for those customers whose free service, warranty and extended warranty was originally ending between April 1, 2021 and May 31, 2021. Apart from booking a new two-wheeler online, customers can now also book a service appointment online. Extending support to dealers, HMSI has announced that the company will bear full interest cost of those dealers’ inventory who were under complete lockdown for 30 days or more.

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