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January 4, 2021

Honda to exit Russia, consolidates in India

Honda Motor plans to withdraw from the Russian car market as part of a global efficiency drive, according to reports in Japan.

By bcusack

Honda Motor plans to withdraw from the Russian car market as part of a global efficiency drive, according to reports in Japan.

The Japanese automaker's sales in Russia are estimated to have fallen to less 1,500 vehicles last year, while total vehicle sales in this market fell by just over 10% to 1,346,351 unitsin the first eleven months of 2020.

The reports suggest the company will cease supplying new cars to official dealers in Russia in 2022, but it will continue to supply motorcycles and power equipment, and will continue to support the existing aftersales and spare parts networks.

The company does not have a vehicle assembly plant in Russia and supplies this market from its global operations.

Late last month Honda also announced plans to consolidate its vehicle and related component manufacturing operations in India at its Tapukara plant in Rajasthan, with immediate effect. This plant has an installed annual production capacity of 180,000 units.

The decision, affecting production for both domestic sale and export, was made to improve business efficiency at its Honda Cars India Ltd (HCIL) subsidiary.

The company had already ceased production at its Greater Noida plant in Uttar Pradesh, but will maintain all head office functions at this location, including local R&D and spare parts operations such as warehousing for cars parts, two-wheelers and power products.

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