Honda likely to discontinue Civic in India

This news may come as a bit of a shocker to Honda fans. A report in Autocar India says that Honda has decided to withdraw the Civic from the Indian market within a couple of months. Sales of the Civic have been falling steadily, although in July it did sell 138 cars, which is better than its previous months sales. In April, May and June it sold only 51, 62 and 58 units respectively.

CarToq spoke with a Honda spokesperson, who says the report is speculative and production of the Civic is continuing as scheduled.

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But the report says Honda will continue to make Civics until kits last, which should be till October this year. The Civic is assembled at Honda’s Greater Noida plant using kits imported from Thailand. The company does not intend to bring in the new Civic that was launched in the U.S and Europe last year, and it’s unlikely that the Civic brand will continue in India.

The main problem plaguing the Civic is the lack of a diesel engine as customers in the Rs. 12 lakh to Rs. 20 lakh price segment have all been opting for diesel cars. The Toyota Corolla Altis is currently the segment leader, selling almost equal numbers of petrol and diesel cars, while the Chevrolet Cruze and Skoda Laura compete month-to-month for the number two spot.

It’s not as if Honda does not have a diesel for the Civic. In fact, the European Civic has a 1.6 litre diesel engine and the Accord has a 2.2 litre diesel engine. Honda also showcased a new 1.6 iDtec engine at the Japanese motor show which goes into the European Civic. But Honda India has no plans of bringing that engine to India, as it does not think it will survive Indian conditions, according to the report. Also read: New Honda Civic delayed

If you are a Honda Civic owner this bit of news isn’t going to be good for you, as the resale value of the Civic will plunge sharply. As it is, resale value of premium petrol cars is quite poor in the present market, where diesel cars are widely favored.

With the Civic likely to drop out of the race, who do you think benefits the most in this segment? Tell us.

Source: Autocar India