Honda will reorganise its car operation in India, scaling down its range of sedans and focusing on compact vehicles, according to media reports.
Honda, which recently converted its India joint venture, Honda Siel Cars India, into a wholly owned unit, plans to postpone sales of the new version of its Civic sedan, and forgo manufacturing the new version of the Accord sedan in the country, Reuters reported, citing Japan’s Nikkei business daily.
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In July, the Economic Times of India (ETI), citing a local component supplier, reported that the latest Civic would not be launched there. Honda Siel declined to comment at the time.
ETI said the ninth generation Civic, already on sale in the US, Australia, Thailand and other international markets, would not be launched in India because it was too expensive and did not have a diesel version.
The Nikkei report said Honda might discontinue the Accord in India as well.
Honda’s India sales, which fell 20% in 2011, jumped 70% in the January-July period, helped by the recently launched Brio subcompact, the Nikkei said.
Car sales in India rose 6.7% in July but were below industry estimates as higher interest rates and a hike in excise taxes stunted demand, Reuters said.
