Honda Struggling Even With the 6th gen City
Honda Atlas launched the 6th gen City in Pakistan in July 2021 replacing the 5th generation model which was dragged for over 12 years, the longest for any locally assembled Honda model. However even after almost 5 months since launch, the so-called new City which was introduced 2 years after being discontinued in international markets, is unable to turn tables for Honda in Pakistan.
Since 2014 Honda Atlas has been shy to disclose individual sales of City and Civic and instead present them as a combined figure to help them appear decent. For more than 7 years, the sales numbers of Honda are appalling especially when compared to Toyota and its just getting worse over the period of time.
With 6th gen City, people were hoping that finally Honda will be able to win their market share back from Toyota. However even after 5 months, the sales numbers remain unappealing against Toyota sedans. In November 2021, Honda sold 2,771 units of City and Civic combined, which was still less than the sales of Toyota Corolla alone, which sold 2,786 units. However Toyota’s other sedan Yaris adds another 1,975 units in the month making the Honda numbers look very pitiful.
So far during the first 5 months of this fiscal year, only 13,215 units of Civic and City have been sold which hypothetically speaking is around only 6,600 units for each. Compared to this, 12,723 units of Corolla and 11,252 units of Yaris have been sold in this period taking the Toyota tally to 23,975 units combined, which is whopping 81% more than the sales of Honda duo.
Compared to this, the Toyota Yaris was launched in much tougher circumstances with COVID-19 lockdowns and economic activities at a complete halt. Even its launch ceremony was washed out due to the deadly virus, but still within just a couple of months it was able to outsell Civic and City combined.
Making matters worse, the newly introduced options such as Changan Alsvin sedan is appearing to be taking some buyers away from the segment, although the impact isn’t too drastic on Yaris sales although its also suffering from a slight decline, however in case of Honda City the damage seems to be quite evident. According to unofficial sources, Changan is selling around 1,700 units a month with nearly 70% of its sales contributed by the Alsvin sedan. This means the newcomer is taking away about 1,000 odd units from the segment every month.
So what do you think is the reason that even the introduction of 6th gen City hasn’t been able to help Honda Atlas in terms of sales; and Yaris despite its rather compromising looks, and the Corolla which is now a more than 7 years old model, are able to maintain a complete dominance over Honda sedans in Pakistan?