Sales at Honda Atlas Cars Limited (HACL) have decreased considerably since July. The company sold 1,809 units in August, a 29% Month Over Month (MOM) fall in sales, according to the statistics.
The company outsold Toyota Indus Motor Company (IMC), which sold 2,404 vehicles, by selling 2,537 units in the previous month.
However, Honda City made up the majority of its sales because both Civic and BR-V have become significantly more expensive as a result of recent price increases.
HACL forecast a 25–35% drop in sales in August, citing price increases, supply delays, and production reductions.
It further stated that a sizable amount of its overall sales came from consumer financing, which will drastically decrease as a result of high-interest rates.
The US Dollar Rate, the manufacturer continued, plays a major part in price increases.
It was noted that raw commodities account for 90% of total costs, with dollar rate fluctuation affecting 60% to 70% of them.
The price increase took place when the USD to Rs. 235 exchange rate was in effect.
Another price increase appears to be coming soon, which might have an even greater effect on HACL’s future sales given that it is gradually increasing at the same rate.
To read our blog on “As Honda reduces production by up to 40%, a supply chain crisis is imminent,” click here.
