After launching its sports utility vehicle (SUV) Elevate in Japan during the third week of March, Honda Cars India has exported more units of this model between April and June than it has sold in India, as the car emerged a run-away hit in its home country.
Data from the Society of Indian Automobile Manufacturers (SIAM) shows that between April and June 2024, Honda exported 10,659 units of the Elevate, with shipments picking up month-on-month.
At the same time, the company sold 5,435 units of the Elevate in the Indian market. Apart from Japan, Honda Cars India is currently exporting Elevate to South Africa and Nepal. Exports of the Elevate picked up from 2,500 units in April to 4,051 units in May and 4,108 units in June.
The company launched the car in Japan in the third week of March where it is being sold as the Honda WR-V. It is the first made-in-India car to go on sale in Honda’s home market Japan.
The WR-V brand was discontinued in India in 2023, however, globally, the moniker is in use. Export of the car had begun around December-January, and it was launched officially in March.
Nikkei reported earlier this week that the new SUV has been such a hit in Japan that the automaker was crowned the country’s top imported vehicle seller in April-May.
After the launch of the model in Japan, where it has been competitively priced at 2.1 million yen ($13,200), including taxes, Honda’s imports beat rivals Mercedes-Benz, BMW and Volkswagen, among others.
A Honda Cars India spokesperson told Business Standard that its vision is to make India a key export hub for the company.
“This is the first time that we are exporting a made-in-India Honda model to Japan. This strategic move is a strong reflection of the manufacturing capabilities of our India operations and also solidifies our vision of making the country a key export hub,” the spokesperson said.
He added, “We started exporting Elevate as WR-V to the Japan market earlier this year. The response to the car has been very good among the young target audience, who were looking at a strong product with a good price. Elevate is being appreciated for its bold SUV design with strong road presence, outstanding space and comfort, advanced safety offering and well-appointed features.”
According to data from the Japan Automobile Importers Association, Honda tops the list of Japanese manufacturers importing overseas-made vehicles (passenger cars), beating Toyota, Suzuki and Nissan.
Honda imported 18,654 cars (all models from all geographies) between January and June this year into Japan, beating Nissan (8,191 units), Mazda (4,705), Toyota (1,000) and Suzuki (523).
Interestingly, the Elevate is priced at Rs 11.9 lakh in India or $14,300 (starting price), the country where it is manufactured.
Nikkei quoted statistics from the Japan Automobile Importers Association, saying that the number of imported Honda car registrations reached 3,472 in April and 4,204 in May. This is more than 20 times the monthly average of 173 units in 2023.
In June, Honda finished second, behind Mercedes-Benz, even though its import tally climbed to 4,319. The high demand for the car pushed Honda to stop taking bookings for one of the grades of this car.
Manufacturing in India has helped Honda offer the car at a competitive price, as it has used made-in-India components, as well as lack of import duty when they import a car from India.
Our made-in-India exports have seen a significant rise in the past few years with addition of new destinations like Japan, Mexico, Turkey, Middle East and African countries (Bahrain, Benin, Ivory Coast, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Tunisia, Egypt and UAE) besides South Africa, Nepal and Bhutan.
Last financial year, our exports grew by 165 per cent at 37,589 units.
During Q1 of the current financial year, exports have grown by 256 per cent at 18,009 units compared to the same period last financial year.
Honda Elevate
Source: SIAM
First Published: Jul 30 2024 | 5:55 PM IST
