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Due to the Drop in Sedan Sales Compared to SUVs, Multinational Honda Decided to End Production of the Honda Civic, Which Is Losing Sales Rankings to Its Competitor Toyota Corolla.
Last week, the multinational Honda announced that it would finalize in December the transfer of car manufacturing from Sumaré to Itirapina, its new factory unit, both located in the interior of São Paulo. However, not all models will receive a new line, as is the case with the midsize sedan Honda Civic, considering that the multinational plans to end local production of the Corolla competitor after 24 years.
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Understand the Decision of Multinational Honda
The decision to cease production of the Honda Civic is primarily due to the success of SUVs. This year, the model sold around 14,000 units between January and September. Its competitor, the Toyota Corolla, for example, sold 30.5 thousand units registered in the same period. But that’s not all; the category has decreased with the rise of SUVs and is currently present in only 5% of sales.
The multinational Honda has already informed suppliers that production of the Honda Civic will end in November. Thus, starting in December, the automaker intends to unify vehicle production at the Itirapina (SP) factories, which was implemented in 2016 but only began operations in 2019 due to successive declines in car sales in the country.
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However, this will not be the end of the Corolla competitor in Brazil. Next year, the multinational will launch a new generation of the Honda Civic that was revealed earlier this year.
The projection is that the new model will be imported from the USA as early as the first half of the year. Therefore, it is expected that the new generation will arrive at a “higher” price for Brazilian consumers, with a price positioning greater than the current one, which goes up to R$ 165,000. This increase is attributed to the implementation of new technologies in the model but will also serve to separate the midsize sedan from the multinational’s compact models.
The New Generation of the Honda Civic Will Arrive in Brazil, Only via Import.
In August, the multinational had already announced that production of the model would be halted and that the Corolla competitor could only be purchased through import.
At the time, the automaker stated that the decision was due to increased taxes and also the volume of sales that had dropped in the Brazilian market.
According to the multinational at the time, the decision was made because the main competitor of the model, the Corolla, has superior sales, even though sedans are losing sales to SUVs. Another reason stated by Honda is that there is internal competition with the Honda City, which is a slightly smaller sedan but close to the Civic. It seems that this will be addressed in the next version of the Honda Civic.
Get to Know the Honda Civic Better.
Launched by Honda in the 1970s, the Civic is now in its 10th generation and has been named Car of the Year twice, in 2007 and 2017. The sixth generation of the model marked the beginning of Honda’s operations in the national market.
At that time, about 20 units were produced daily. The latest version of the model began selling in early 2012 with a power of 140 horsepower, and in January 2013, it gained an engine that provided the vehicle with 155 horsepower.
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