With sales at an all-time low, Pakistan’s auto industry is currently going through extremely challenging circumstances. The figures are now even lower than they were 20 years ago.
While the auto industry as a whole is facing difficulties and all auto manufacturers are seeing significant declines in sales, Honda, the smallest of the Big 3 assemblers in Pakistan, is taking the brunt of these challenges. Analyzing the production & sales data revealed by PAMA (Pakistan Automobile Manufacturers Association) demonstrates how disappointing Honda’s sales figures are.
Related: Nosediving Sales Figures Continue to Haunt Local Assemblers
The company has stopped disclosing individual sales numbers of Civic and City sedans since 2014. But the cumulative numbers of the two sedans which were already on a decline during the last few years have now fallen flat. So far during the first 5 months of this fiscal year, the duo managed just 3,151 units which is 60% lower than the 7,925 units sold in the same period of the previous fiscal year.
This renders a sorry monthly sales average of just 630 units shared between the two. Since we don’t have official data on the individual sales figures for the two, unofficial sources estimate that Honda City accounts for about 70% of the total. Assuming this, the monthly sales average of City turns out to be around 440 units while Civic has a monthly average of just around 190 units.
Related: How Can Car Sales Improve in Pakistan?
Honda experienced a wonderful time with the introduction of the 10th-generation Civic, aka Civic X in 2016 and onward, but it hasn’t been able to replicate that with the 11th-generation model introduced last year. One of the key factors is the insanely high price which exceeds Rs 10 million and in presence of quality options such as the D-segment Hyundai Sonata, or the quality crossover SUV options such as the Haval H6 which not only offers better value for money, rich features & unparalleled safety equipment on offer, as well as a more imposing road presence, something which matters the status-conscious people having the luxury to spend this much money— the C-segment Honda Civic is struggling to leave the showroom floors.
The monthly sales average of 440 units for Honda City is reportedly higher than the current sales average of Toyota Yaris or Changan Alsvin among the B-segment sedans, as per unofficial sources, but it’s not certainly enough to keep the company afloat.
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Honda also presents the combined figures of HR-V and BR-V both of which are performing even poorer than the aforementioned duo. The cumulative sales as of the first 5 months of this fiscal year stand at just 833 units which is 24% down from the already low figure of 1,099 units sold in the corresponding period of the previous fiscal year. Only 833 units in 5 months render a monthly sales average of just 166 units shared between the two. This means individually, one can assume just 83 odd units leaving the showroom floors each month which is just hopeless.
One of the prime factors for Honda’s miseries in Pakistan is the absence of small cars in its product portfolio. A lack of smaller, fuel-efficient models among the offerings is indeed a missed opportunity for Honda to tap into the growing demand for small cars in Pakistan. With ever-increasing prices, buyers of sedans are now looking for affordable hatchbacks. Models like Brio and N-One, which are already successful in other Asian regions, could provide Honda with a competitive advantage and attract a larger consumer base. The immense success of the Suzuki Alto is a prime example, it is the only car posting decent numbers even in the toughest of economic times.
Related: Honda’s Miseries Due to the Absence of its Small Cars in Pakistan
To overcome the challenges faced in the Pakistani market, Honda must consider several strategies. Firstly, reevaluating their pricing strategies to align with market expectations and competitors’ offerings can increase affordability and attract potential buyers. Secondly, updating the lineup with smaller and fuel-efficient models like Brio and N-One will enable Honda to address the evolving demands of Pakistani consumers and regain its competitive edge. What is your opinion regarding the declining sales of Honda in Pakistan, let us know with your comments.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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