Sunday, August 5, 2012

Production of Honda Civic in India halted: Bitter truth or blessed illusion?


If reports are to be believed, production of Honda Civic, one of the highest selling cars in the world, has been discontinued from the Indian automobile sector. This news has come as a shock for Civic enthusiasts all over the country. Honda, however, has not been available to comment on the same.


The news 
came from Hormazd Sorabjee, the Editor of AutocarIndia. Apparently, Honda has already stopped importing completely knocked down (CKD) kits and is set to stop production once the remaining units are built. In another couple of months, the local dealers are expected to clear stocks and the company shall cease sale of the car thereafter.


According to research, Honda Civic was the eighteenth largest selling car model in the first quarter of fiscal year 2012. However, the Civic available in other parts of the world is vastly different form the model available in India. What is being perceived as a disheartening move by Honda so far could be a blessing in disguise. In the past, other cars like the Hyundai Elantra and Maruti Suzuki Swift have gone off production for a short duration of time only to emerge with new improved versions.


There is high probability of Civic getting a facelift as Hyundai Elantra, which is scheduled to be launched this month in India, will pose tough competition to the car as it falls in the same price bracket. With fluidic design, a diesel variant and various other add-ons, the Elantra might just prove more than a match for the Honda Civic, which is still only riding on luck with its loyal customers. At the same time, Chevrolet, whose profits are mainly going downhill, has somehow realised some of its potential with the Cruze, which is again stiff competition for the Civic.


At such a time, it would not be a bleak observation to say that Civic is not performing in India as per its standards all over the world. Hence, to put this car off production might not be a great option for Honda which really needs to rev up its sales numbers. Given the astounding worldwide sales volumes of the Civic, the corporation might just be eyeing to capture the Indian markets with a revamped Civic.


The other sedans from Honda's stable have done well so far. City has been a hot favourite among many over the years and the Accord has established itself as a status symbol. If the Civic is able to top the list in D-segment, Honda can secure its place in the Indian passenger car segment.


Amid speculations, rumours are also afloat that the production of Hyundai Accent is being stalled. Poor sales of the car in the last few months are touted to be the reason for this compelling step. Only time can tell whether the car will no more be rolled out from showrooms in India or a possible revamped version of the car is in the pipeline.

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