This Article is From Sep 04, 2012

Honda to focus on compacts, will discontinue Civic

Honda Motor will reorganize its car business in India, scaling down its lineup of sedans and focusing on compact vehicles, the Nikkei reported.

Honda, which recently converted its India joint venture, Honda Siel Cars India Ltd, into a wholly owned unit, plans to postpone sales of the new version of its Civic sedan, and forgo manufacturing the new version of the Accord sedan in the country, the business daily said.

The Japanese car manufacturer may discontinue the Accord vehicle altogether in India, the paper said.

NDTV's sources, however, have confirmed that the Civic will be phased out by December this year, while the Accord will continue to sell, but will be volume-focused.

Honda's India sales, which fell 20 per cent in 2011, have jumped 70 per cent in January-July, helped by the newly launched Brio subcompact, the Nikkei said.

Car sales in India rose 6.7 per cent in July but were below industry estimates as higher interest rates and a hike in excise taxes stunted demand.

With inputs from Reuters