Honda Motor RUS LLC, the Russian subsidiary of Japanese carmaker Honda Motor Co, is planning to stop supplying new cars to dealers in Russia in 2022, according to media reports citing a statement by the company.
The move to withdraw car sales in Russia is a part of the company’s strategy to restructure its operations amid the ongoing changes in the global automotive industry.
In November, the company’s car sales in Russia fell by 50pc to 79 units as compared to the same month in 2019. In the Jan-Nov, 2020 period, the company’s sales in Russia stood at 1,383 units, down by 15pc from the prior-year period, while the total auto sales in the country stood at 1.3mn units in the 11-month period.
The company said it will retain motorcycle and power equipment sales in Russia and continue after-sales service of its vehicles.
The auto industry suffered huge losses in 2020 due to the impacts of the COVID-19 pandemic. Auto sales all over the world were affected, especially in April and May. The transport of units was also affected due to logistics problems as nations closed their borders.
Honda does not have a manufacturing or assembling plant in Russia, unlike other auto manufacturers like Toyota and Nissan.
In November, the company’s car sales in Russia fell by 50pc to 79 units as compared to the same month in 2019. In the Jan-Nov, 2020 period, the company’s sales in Russia stood at 1,383 units, down by 15pc from the prior-year period, while the total auto sales in the country stood at 1.3mn units in the 11-month period.