On Wednesday, the Russian subsidiary of Honda Motor Co said it would stop supplying new cars to official dealers in Russia in 2022. The move is part of the company’s efforts to restructure its operations.
Honda has clarified that it is not withdrawing from the Russian market at this juncture; it would keep its presence in the Russian market with motorcycle and power equipment and retain its after-sales service of its vehicles.
Unlike its Japanese peers Nissan and Toyota, Honda does not have any plants in Russia. Last month it sold only 79 vehicles in Russia marking a 50% drop from a year earlier, said the Association of European Businesses.
Honda’s sales from January to November 2020 were down by 15% to 1,383 vehicles. During this period more than 1.3 million new cars were sold in Russia.