Honda has revised its sales projections for the Asian market post the announcement of demonetisation. The target has been reduced by 5.6 lakh units to 1.59 crore units on account of the drop in the performance of the company’s Indian arm – Honda Motorcycle and Scooter India (HMSI).
In the third quarter of this financial year, Honda reported a growth of 27.4 per cent worldwide. However, sales could have been better had it not been for the sales dip in the Indian market. While HMSI experienced a marginal 2 per cent hike in sales in January, the growth in the last two months of 2016 were in the negative. This drop in sales has forced Honda to revise its annual targets for the Asian markets in this financial year.
The Kumamoto earthquake, which affected the company’s development and production facility in Japan, also caused a major setback for the company in the last year. Globally, Honda expects to sell 1.77 crore two-wheelers, down from 1.82 crore units it had earlier projected. Nevertheless, Honda expects the budget 2017 to boost two-wheeler sales.