How Honda India Missed the Mark (And How It Could’ve Done Better)

 Hello again! I am back on your computer screen, so sit back, relax and let’s talk about Honda India, a company that once had all the hype and potential but somehow lost its way. Here’s a look at how Honda started strong but ultimately dropped the ball, especially in recent years.

1. The Glory Days – Honda’s Early Years in India

Let’s rewind a bit. Honda’s entry into the Indian market was nothing short of a dream. The Honda City, which was launched in the late '90s, quickly became the symbol of class and sophistication for urban India. It was the first car that many middle-class families could aspire to without breaking the bank. It had the perfect balance of style, performance, and practicality. The Civic and CR-V followed, and suddenly, Honda was the go-to for anyone who wanted a car with a bit of flair. For a long time, it was "Honda" that represented quality and modernity in India.

But things started to change, and the decline was gradual.

2. The Mismanagement of Hybrid Technology

Honda had a golden opportunity to become a leader in the hybrid car segment in India. The world was slowly shifting towards eco-friendly vehicles, and hybrid technology was becoming more accessible. Honda launched the Honda Insight and the Honda Accord Hybrid globally. In India, however, they missed the boat. Their timing was off, and they never really took the hybrid technology seriously here.

Instead of pushing the hybrid agenda, Honda got caught up in traditional models and petrol/diesel engines. The market wasn’t ready to embrace hybrids fully, but Honda could have been ahead of the curve by introducing affordable, fuel-efficient hybrids as an alternative. While Toyota launched the Prius and soon brought in hybrid versions of the Camry, Honda’s hybrid models barely made a mark in India. Their failure to push hybrid technology effectively meant they missed an entire shift in the automotive market toward sustainability.

3. The Fall of Honda City Sales

Remember when the Honda City used to dominate the sedan market? People still associate the City with class and sophistication, but these days, the car's sales are a shadow of what they once were. The City was one of the first cars to make sedans cool and was a dream for many. But now, it’s facing tough competition from other sedans and compact SUVs that have become the choice of the modern Indian consumer.

Why? Well, for one, the market has shifted away from sedans. The rising popularity of SUVs and hatchbacks has left sedans like the Honda City behind. The competition from cars like the Hyundai Verna, Toyota Yaris, and even compact SUVs like the Maruti Suzuki Vitara Brezza and Hyundai Creta have overshadowed the City. Honda didn’t refresh the model quickly enough, and when they did, it was almost too late. The features were outdated, the tech wasn’t on par with what was trending in other cars, and the price point wasn’t exactly competitive. Honda didn’t do enough to keep up with changing buyer preferences, and as a result, the once-unstoppable Honda City has seen its sales drop drastically in recent years.

4. The Honda SUV Gap

While the entire country was shifting towards SUVs and crossovers, Honda didn’t give India what it wanted. Sure, they had the Honda CR-V, which was nice, but it was too expensive for the average Indian buyer. The Honda BR-V came in, but honestly, it didn’t have the same appeal as something like the Hyundai Creta or the Kia Seltos. The SUV market was booming, and Honda barely had a competitive offering. By the time they entered the SUV game, the competition had already taken over.

Their focus on the BR-V (and other ASEAN models), which was essentially a stretched version of the Amaze, didn’t quite hit the mark. It couldn’t compete with the style, features, or price of other more popular models. So, while the demand for compact SUVs surged, Honda didn’t respond in time with something that felt like a serious contender.

5. The Diesel Engine Disaster

Honda’s attempt at the diesel market was a bit of a flop too. Diesel cars were huge in India, but Honda’s engines didn’t quite live up to the hype. They offered diesel variants of cars like the City, but the engines weren’t as powerful or as fuel-efficient as those from the likes of Hyundai or Tata. This made the diesel variants of Honda cars less attractive to Indian buyers who were already focused on getting the most bang for their buck in terms of power and economy.

6. Tech and After-Sales – A Missed Opportunity

Honda also didn’t do enough to keep up with the tech game. As rivals introduced features like touchscreen infotainment systems, Apple CarPlay, Android Auto, and advanced safety features, Honda was slow to integrate these into their cars. While their cars were reliable, they didn’t really offer the cutting-edge features that younger, tech-savvy buyers were looking for.

And don’t even get me started on the after-sales service. Honda’s reputation for good after-sales service just wasn’t consistent, and the high costs of maintenance and spare parts didn’t help either. As competitors like Hyundai, Maruti, and Tata worked hard to provide better service, Honda couldn’t maintain that same level of customer satisfaction, which affected their overall reputation in the market.

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So, What Could They Have Done?

Here’s where Honda could’ve played things differently:

• Focus on Hybrids Early On: If Honda had pushed hybrid cars when they were starting to become a thing, they could’ve been the leader in that segment. The hybrid tech was there, but the commitment to it wasn’t strong enough.

• More Affordable SUVs: Instead of only focusing on premium offerings like the CR-V, Honda could’ve entered the compact SUV market with something affordable like the Hyundai Creta or the Kia Seltos. A small, practical, feature-loaded SUV would’ve appealed to many buyers.

• Update the Honda City Sooner: The City had a legacy, but it didn’t evolve fast enough. Honda needed to refresh the City with better tech, updated styling, and more competitive pricing. They couldn’t rely on nostalgia forever.

• Better Diesel Engines: Honda could’ve made their diesel engines way better to keep up with competitors like Hyundai and Tata, who are offering more power and better fuel efficiency for about the same price.

• Tech and After-Sales Service: Honda needed to push more on tech integration and focus on keeping their after-sales game strong. Car buyers in India have become increasingly tech-conscious, and without proper after-sales support, no matter how good the car is, people will think twice.