Honda Cars India reported a sharp 25.8 percent year-on-year decline in sales for September 2025, selling 8,096 units compared to 10,914 units in September last year. The drop highlights the automaker’s struggle to maintain its footing in a market increasingly dominated by SUVs and newer entrants offering broader product portfolios. While Honda continues to hold a loyal customer base for its sedans, demand for the same has weakened as buyers shift toward more feature-rich hatchbacks and compact SUVs offered by rival brands. In that category. Honda’s sole offering, the Elevate, seems to have not performed as well as the brand would’ve liked.
Month-On-Month Figure Shows Growth
Though there was a year-on-year decline, Honda managed a 19.5 percent month-on-month growth compared to the 6,774 units sold in August 2025. This indicates some recovery which is crucial as the festive season has commenced. The company’s overall vehicle dispatches, which include both domestic sales and exports, reached 8,096 units in September. Of this, exports accounted for 2,793 units, showing a 46.7 percent YoY decline and considerable dependence on exports. Honda’s production volumes have been steady, but the company has faced low demand across its model lineup earlier this year. The company’s strategy to balance inventory ahead of the festive season would be cruical.
Market Dynamics & Sales Breakdown
The nearly 20 percent month-on-month growth can be attributed to the revised GST rates. Though, the numbers are not very impressive, especially as the festive season has started. Several factors contributed to the decline, including limited SUV presence and product lineup, and intensifying competition from other automakers.
The table below shows Honda India’s September 2025 sales report:
| Source | September 2025 (Units) | September 2024 (Units) | YoY Change |
|---|---|---|---|
| Domestic Sales | 5303 | 5,675 | -6.6% |
| Export Sales | 2,793 | 5,239 | -46% |
| Total Sales (Domestic + Export) | 8,096 | 10,914 | -25.8% |
The table below shows sales of popular Honda India models in September 2025:
| Model | September 2025 (Units) | September 2024 (Units) | YoY Change |
|---|---|---|---|
| Honda City | 2,350 | 2,870 | -18% |
| Honda Amaze | 1,250 | 1,380 | -9% |
| Honda Elevate | 780 | 820 | -5% |
| Honda City HEV | 150 | 180 | -16.7% |
The City and Amaze continue to drive most of Honda’s sales. The Elevate didn’t deliver volumes and has impacted the company’s monthly performance. The SUV had initially generated strong interest, but its popularity appears to have reduced among customers. Additionally, new feature-packed offerings from Tata, Hyundai, and Maruti Suzuki have raised consumer expectations across segments, making it harder for Honda to maintain previous volumes.
Outlook For The Coming Quarter
Despite the dip in September, Honda remains optimistic thanks to its month-on-month surge. It will expect a gradual recovery in the final quarter of 2025, supported by festive demand. Sustained growth will depend on how effectively Honda diversifies its portfolio and adapts to the fast-changing preferences in the Indian passenger vehicle market. While September’s numbers reflect short-term pressure, the next few months will be critical in determining whether Honda can regain momentum in one of its most competitive regional markets.
