Honda BR-V Requires Revitalizing Defibrillation

Abdullah

02 Jan 2024

474 Honda BR V

Honda BR-V Requires Revitalizing Defibrillation

Last year, Honda made a strategic decision to merge the sales figures of the BR-V with the recently introduced HR-V, mirroring its approach with the Civic & City models. However, this tactic, aimed at masking the individual underperformance of these vehicles, has inadvertently cast a negative light on the company's overall sales perception.

Challenging Sales Figures

In the first five months of this fiscal year, Honda only managed to sell a combined total of 833 units of HR-V and BR-V. This results in a disappointing monthly average of 166 units for the duo. Upon closer inspection, dividing this number hypothetically reveals a mere 83 units sold monthly per vehicle, emphasizing the alarmingly low sales figures.

Unsold Inventory and Production Gap

Analyzing PAMA statistics, it is evident that Honda faced challenges in the previous fiscal year, producing 1,453 units but selling only 1,099, leaving 24% unsold. This year, out of 1,255 units produced, only 833 have been sold, indicating a 33% inventory surplus. Notably, production gaps in October and November suggest Honda is grappling with clearing out unsold inventory despite discounts and promotions.

Competitive Struggles in the Market

Despite the BR-V's practicality and extra seating capacity compared to competitors like Hyundai Tucson and Haval SUVs, sales are lagging. The Honda BR-V, with no direct competition, should ideally outperform, but its sales performance falls disappointingly short, especially when compared to more expensive crossovers.

Quality and Features Concerns

Critics point to subpar interior quality and a limited features list as contributing factors to poor sales. With a high price tag of PKR 62.99 lac for the iVTEC-S trim, expectations for superior materials and features are not met. Additionally, the discontinuation of previously offered variants due to low sales raises questions about the model's appeal.

Global Discrepancy and Outdated Model

The BR-V's discontinuation in India and Malaysia due to sluggish sales contrasts with success in markets like Indonesia, Philippines, Thailand, and South Africa. Notably, these markets feature the newer generation model introduced in late 2021, whereas Pakistan retains the globally obsolete version, potentially diminishing the vehicle's appeal.

Future Uncertainty and Need for Revitalization

Considering the challenging economic situation in Pakistan, expectations for Honda Atlas to introduce the New 2nd generation BR-V seem optimistic. The current sales trend raises doubts about the profitability of continuing with the BR-V. Urgent revitalization efforts are essential to prevent the potential farewell of the 7-seater model in Pakistan, as monthly averages hover below 100 units.

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