Low demand for City, Elevate and Amaze! Honda is not getting more customers, exports also decreased

Low demand for City, Elevate and Amaze! Honda is not getting more customers, exports also decreased

The beginning of the year 2026 was nothing special for Honda Cars India. The company has seen a decline in sales in January 2026 compared to last year. The company has registered total sales of 6,941 units in January 2026. In this, domestic sales were 6,193 units and export was 748 units.

Sales of 6,193 units in the domestic market are 15.45% less than 7,325 units in January 2025 last year. This year-on-year (YoY) decline could be mainly related to lower demand for Honda cars in the market, competition and possibly change in demand patterns for some models. However, a bit of good news is that there has been an improvement on a month-on-month (MoM) basis from 5,807 units in December 2025.

Exports also decreased

The situation in exports was more challenging. Only 748 units were shipped abroad in January 2026, which shows a huge decline of 84.98% from 4,979 units in January 2025. Due to this, total sales decreased by 43.59% from last year's 12,304 units. This sharp decline in exports may become a cause of concern for Honda. Honda Cars India mainly exports the City and Elevate models, which have been strong in the past, but looked affected this month.

What did the company say?

Company's Vice President (Marketing and Sales) Kunal Bahl said that the year has started with a strong environment. Honda Amaze is driving strong demand due to its value-for-money offering, while City and Elevate are making steady contributions. The company is confident of maintaining this positive momentum in the coming months.

Honda is giving discounts to customers

Honda also launched attractive offers in January 2026, which included savings (cash discount, exchange benefits, etc.) of up to ₹ 1.76 lakh on some models. These offers were applicable on Amaze, City (Petrol and Hybrid) and Elevate in select cities, which proved helpful in increasing demand.

Overall, there have been signs of slight recovery in the domestic market, but a large decline in exports affected the overall performance. Amidst the increasing demand for SUVs and EVs in the Indian auto sector, Honda is focusing on its sedan and compact SUV range. The company is expecting better performance in 2026 with new product updates and strong retail strategy. The company currently has its only SUV in the form of Honda Elevate.

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The most spectacular opportunity to bring Honda City home, bumper discounts in July

The most spectacular opportunity to bring Honda City home, bumper discounts in July

New Delhi. Honda City has been away from the headlines for some time. In May, the City sold only 491 units, including both standard petrol and hybrid or E: HEV. In comparison, Volkswagen Virtus, the leading sedan segment, sold 1,707 units. To increase sales, Honda Cars India decided to close the City Hybrid V variants, which was a more economical option. The good news is that now the top model ZX is getting a huge discount of about Rs 95,000, which is now about 90,000 rupees more expensive than the closed V variants.

Cheap up to Rs 95,010
Honda has reduced the price of City Hybrid by Rs 95,010, causing the X-showroom price of the ZX variant to Rs 19.90 lakh, which is a reduction of 4.56%. This base V variants have happened after the closure, which has only feature-pack ZX trim left. This price reduction balances an increase of Rs 29,900 from May 2025.

1.5-liter natural aspirated petrol engine

City Hybrid is the only hybrid sedan in its segment and is powered by two electric motors with a 1.5-liter natural aspirated petrol engine. One acts as a generator to charge the battery, while the other gives strength to the wheels. The output of the motor is 107 bhp with 253 Nm at 3500 rpm, and the engine generates 97 bhp at 5600-6400 rpm and 127 Nm at 4500-5000 rpm. According to Honda India, City Hybrid gives a mileage of 27.26 km per liter.

Level 2 Advanced Driver Assistance Systems
The City Hybrid Camera-based Level 2 is equipped with Advanced Driver Assistance Systems (ADAS), which includes features such as Adaptive Cruise Control, Lane Keeping Assist System, Road Departure Mitigation System, Colision Mitting Breaking System, Auto High-Beam and Lead Car Departure Notification System. It has standard security facilities like six airbags, lane watch camera, hill start assist, multi-angle rear camera, emergency stop signal, rain sensing wipers, vehicle stability assist, ABS with EBD, Tire Pressure Monitoring System and more.

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Honda will not discontinue sedans in India. City and Amaze sales to continue

Honda will not discontinue sedans in India. City and Amaze sales to continue

Honda Car India will not discontinue its sedan range in India amidst launching new SUVs, contrary to a recent report. The Japanese automaker confirmed to HT Auto that the Honda City and Amaze sedans will continue to be sold in the country, even as it surges forward with an SUV-focused strategy. Honda recently introduced the Elevate compact SUV, its first all-new offering in three years and an all-new nameplate in 10. The automaker plans to bring five new SUVs to India by 2030.

By: Sameer Fayaz Contractor
| Updated on: 03 Nov 2023, 18:37 PM

The Honda City and Amaze models have remained the brand’s popular sellers for years, only joined by the Elevate compact SUV this year

While SUVs will clearly be Honda’s priority over the next few years, the company will continue retailing its bread-and-butter models as well. The Honda Amaze is the brand’s most accessible offering and continues to average about 3,000 units every month, taking on the Maruti Suzuki Dzire, Hyundai Aura and Tata Tigor.

Also Read : Honda announces 5 new SUVs for India by 2030, Elevate Electric to arrive by 2026

Honda Amaze facelift
The Honda Amaze is the brand’s entry-level offering in India (HT Auto/Sabyasachi Dasgupta)

The Honda City, its most celebrated model in India, brings in about 1,500 units month on month. The numbers are on par with models like the Skoda Slavia and Volkswagen Virtus, which average a little over 1,500 units every month, while the new-generation Hyundai Verna is the segment bestseller bringing in over 2,500 units every month.

Sedans may have lost their popularity across segments over the years but there’s no denying that the cars continue to bring in considerable sales and revenue for automakers. Both the Honda Amaze and City enjoy admiration for their respective reliable engines, good build quality and easy ownership. Moreover, the Honda India plant not only caters to the domestic market but also exports both sedans overseas. The Right Hand Drive (RHD) Amaze and City are shipped to South Africa and the neighbouring countries around India. On the other hand, the Left Hand Drive (LHD) is exported to Mexico, Turkey and the Middle East market. Both models are built at the Tapukara plant in Rajasthan.

Also Read : Elevate SUV helps Honda Cars clock 9,400 unit sales in October 2023

Honda Elevate first drive review
The Honda Elevate kicks off the brand’s SUV strategy with an electric version planned in 2026, apart from other models

That said, the Honda Amaze is expected to get a new lease on life with the third generation reportedly in the works. The new-gen Amaze could arrive in 2024 and will be based on an evolution of the current version’s platform that has been around since 2018. It is also expected to get a design and feature revamp. The Honda City, meanwhile, holds a lot of importance in the APAC region, apart from India, with no announcements to discontinue the model in these markets. This still leaves room for the next generation to arrive in India when the model is ready globally.

Watch: Honda Elevate SUV: First drive review

Honda Car India’s SUV strategy kicked off with the Elevate this year. The automaker has confirmed the arrival of the electrified version in the next three years. A subcompact SUV, possibly based on the Amaze platform, is also said to be on the cards. Previously, the automaker confirmed that it plans to launch one new model every year in India, which includes hybrids and EVs. The company is also expected to bring premium models via the CBU and CKD routes in India.

First Published Date: 03 Nov 2023, 18:37 PM IST


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