The Japanese automaker Honda has been struggling for a while now and had worked out strategies to increase its sales since the priority of customers drastically changed from petrol to diesel cars. Honda cars were priced high and only premium customers could afford to buy a Honda car. Jazz was the most expensive petrol hatchback in the country for about two years since its launch at a prce of Rs.7 lakh(ex-showrom) and the Honda City was priced at Rs.9.00 lakh(Ex-showroom) when it was launched. Honda felt the slow sales pace and hence decided to cut down the price of the jazz after a good two years by Rs.1.50 lakh and the City was cut down by Rs.75,000. That is when the Honda sales started ticking up and immediate delivery of Honda cars started having waiting periods.
Recently Honda fell short of supplies due to the recent floods in Thailand and as a result has forcefully stopped productions of the C-plus segment segment sedan,City and the B-segment hatchback, Brio. Due to this the waiting period of Honda cars have rised invariably. Since there is no production of the City and Brio, dealers are running out of stock to give its customers and in turn, the customers are limited to stock and color options. In fact dealers have stopped taking bookings for the Jazz and the waiting period for Jazz is believed to be upto eleven months. We assume it will take atleast three months for Honda to resume its production operations.
Honda is planning to get help on supplies from coutries like China and Japan inorder to manage the show to an extent. An executive from Honda said that the output of cars will be affected in December by 95% and that only a limited volume of production will go on to maintain manpower. Though none of the actions by Honda to come back to normalcy is cofirmed, we hope Honda sets it all right pretty soon and goes ahead with its plan of launching the new facelift Honda City as per schedule.