Japanese carmaker Honda had a rough patch in India last year when its sales declined 18 per cent even as the market grew by 9 per cent. Having largely relied on the City for the bulk of its sales, Honda faced a challenge when the City acquired a competitor in the form of Maruti Suzuki’s Ciaz, which became the segment leader.
Sales of the City shrank by 25 per cent in 2016-17 to 57,984 cars. Accordingly, the model’s contribution to Honda’s car sales in India declined to 37 per cent from over 40 per cent in 2015-16. The launch of the