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Honda has not produced a single unit of the Mobilio multi-purpose vehicle (MPV) in India since last ten months owing to severely crippled demand.
The multi-people carrier, launched by the Japanese company two years ago, has perhaps faced what could be the worst reception a new Honda model has ever received in India.
The Mobilio has stayed away from the production lines since end of November last year, according to data supplied by the Society of Indian Automobile Manufacturers even as the company maintains that the model has not been phased out from India.
Further, the company has no immediate plans to restart production of the model 'for some weeks at least', even as monthly volumes dip to a record low of around 200 units a month as against an average of around 3,400 units per month it received in its debut year.
Discounts ranging between Rs 50,000 to Rs 1,00,000 are being offered on the Mobilio presently to get rid of the existing stock.
With the Mobilio Honda faced a double whammy. The model competed against established rivals like Maruti Suzuki Ertiga, Mahindra Bolero, Chevrolet Tavera to name a few. Penetrating into a new segment where rivals have stranglehold has been always difficult.
Secondly Honda has not established itself in the commercial segment (tourist taxi) as successfully as rivals Toyota (Innova) or Tata Motors (Indica). Honda is known for its driver-centric cars and the brand has always been popular with private buyers.
"The MPV segment is currently largely driven by sales in the commercial segment, while Mobilio's sales are mainly focused on customers who drive MPVs for personal usage. We would have liked to sell more, but as of now, the sales are as per the potential of the personal usage segment," a Honda Cars India spokesperson said.
Further, demand for MUVs/MPVs have crippled in India forcing at least two companies to cancel launches in this segment. While Korean brand Hyundai decided against launching the Hexa Space MPV US-based car maker General Motors also said it wont launch the Chevrolet Spin MPV.
Since the time Honda set foot in India two decades ago the company has had an equal measure of success and failure. Where models like the City, Amaze and new Jazz have been declared a success other models like Brio, Civic, BR-V and CR-V have been a disappointment.
The BR-V, which is a labelled as a sports utility vehicle by Honda, rests on the same platform used by the Mobilio. While a lot of parts and components are shared between the two models the two have a similar design and styling language too.
"This similarity has resulted in a confusion to the buyer even as there have been no real push by Honda to position the two distinctly thereby hurting Mobilio. The BR-V is facing its own headwinds in the SUV segment where we have successful models like the Hyundai Creta," an analyst said.
