The Russian subsidiary of Honda said on Wednesday it would stop supplying new cars to official dealers in Russia in 2022 as part of the company's efforts to restructure its operations. The company said it would keep its presence on the Russian market with motorcycle and power equipment sales, and retain its activities related to the after-sales service of its vehicles.
Honda, which has no plants in Russia unlike other Japanese carmakers such as Toyota and Nissan, sold 79 vehicles in Russia last month, a 50% drop from a year earlier, according to the Association of European Businesses. Its sales from January to November were down 15% to 1,383 vehicles.
More than 1.3 million new cars were sold in Russia during that period.
Honda Cars India also announced their restructuring plans for India last week, starting that car production at their Greater Noida plant will seize with immediate effect. However, all Head Office functions, India R&D Centre and Spare Parts operations (including warehouse) for Automobile, Two Wheeler and Power Product business will continue to operate from Greater Noida.
Mr. Gaku Nakanishi, President & CEO, Honda Cars India said, “Despite an uptick in sales in the last three months, the current market conditions remain unpredictable for the industry at large. The impact of COVID-19 has pressed us to strengthen our constitution, and to achieve the same, HCIL has decided to consolidate its manufacturing operations by making the Tapukara plant a unified manufacturing base. HCIL continues to believe in the resilience of the Indian economy and hope for a quicker recovery of the market. India is extremely important market in Honda’s global strategy and HCIL is committed to bring its latest and advanced technology models including electrified vehicles in future.”
With Inputs from Reuters