Inside Honda's Plan To Arrest Sales Slide
Sales data from March 2026 reveal an interesting development- Honda’s sales have slipped by over 18%! This happens at a time when the industry in general, has been posting healthy growth and strong sales momentum. The Japanese carmaker is now plotting a smart recovery plan, with electric and hybrid models at its centre. Let’s take a closer look.
Honda Cars India sold 10,036 units in March this year. Domestic sales stood at 7,585 units while exports amounted to 2,451 units. In March 2025, however, it had recorded sales of 11,884 units- domestic sales of 7,228 units and 4,656 units in export. The total sales have fallen by 1,848 units- translating to an 18.4 percent de-growth.
Honda has long been working on a comeback plan for the Indian market. The roadmap looked aggressive, future-ready, and heavily tilted towards electrification. This strategy recently underwent a major shift. Honda scrapped three EV models globally, one of which was originally slated to be introduced in India as the carmaker’s first all-electric model here. Under the revised strategy, instead of pushing hard on electric vehicles, the company would lean heavily toward hybrids.
The company is redirecting funds that were previously allocated for electric vehicles towards developing a new generation of low-cost, highly localised hybrid systems. Cost-effective hybrid systems are likely to work well in a price-sensitive market like India.
Honda’s present portfolio in India consists of the Amaze (second and third generations), City, City hybrid and the Elevate. In the upcoming time, more hybrid models will join this array.
Despite the strategic pivot, Honda isn’t slowing down on product launches. It plans to introduce six key models between 2026 and 2027.
At the top of the lineup will be the new Prelude that could serve as a halo product. It will be a two-door coupe- the first such modern product from Honda. The Prelude will be brought as a CBU (Completely Built Unit) import and will likely have a premium pricing when launched. The coupe will be powered by a 2.0-litre strong hybrid petrol engine that makes 200hp and 315Nm. It will also feature Honda’s S+ shift system, shared with models like the Civic Type-R.
Another hybrid model expected from the company is the ZR-V. This will be a hybrid SUV and a CBU import. When launched, the ZR-V will become the carmaker’s flagship SUV. It will be powered by a 2.0-litre strong hybrid powertrain producing around 184hp. It will come with an e-CVT transmission. This SUV will bring a tech-heavy cabin with features like ADAS and a 12-speaker BOSE audio.
On the mass-market side, the WR-V will likely make a comeback. The Indonesian spec was recently spied testing in Pune. When launched here, the next-generation WR-V will be underpinned by the Amaze platform and will likely borrow its powertrains from the sedan. Honda will chase volumes with this product.
Another launch expected this year, is the facelifted Honda City. This will be the second facelift to the sedan, aimed at keeping it relevant till the next-generation arrives in 2028. Updates are expected to be largely cosmetic. Interior trims could also be improved and features like 360-degree camera added to the updated model.
The Elevate SUV will also get a hybrid powertrain this year. It will then become the carmaker’s first mass-market hybrid SUV in India. The powertrain on this vehicle will be different from what’s offered on the City e:HEV. It will use more energy-dense electric motors and lighter battery packs along with the 1.5L Atkinson cycle petrol engine. This powertrain will be more efficient and cost effective.
Finally, the company will launch its first EV offering in 2027. It will be the production form of the 0 Alpha SUV concept. The company has already started testing this vehicle on Indian roads.
When it enters production, the 0 Alpha-based electric SUV will compete with the Hyundai Creta Electric, Mahindra BE6 and other mid-size e-SUVs. It is likely to come with a 65kWh-75 kWh battery pack, with a claimed range of around 450-500km, for the bigger unit. The 0 Alpha SUV will have heavy localisation gone into it, and will likely be priced competitively.