Why isn't the Honda BR-V selling well?
  Sep 02, 2023      

Why isn't the Honda BR-V selling well?

In 2016, Honda debuted the BR-V 7-seat MPV in Pakistan. The MPV was meant to sell like hotcakes since it was a practical and economical seven-seater, but despite being on the market for more than 6 years, the BR-V hasn't been able to accomplish for Honda what it was supposed to.

In reality, in its early years, the monthly sales average of the BR-V was about 700 units (719 units in FY16-17 and 723 units in FY17-18), but by 2021, the monthly sales average of the BR-V was just under 330 units (4,015 units sold in FY20-21). In the first four months of current calendar year, Honda sold just 1,616 BR-Vs, averaging 404 units per month; nevertheless, the Hyundai Tucson, which is not only a far more costly car than the BR-V but also a 5-seater, sold 2,038 units, averaging 510 units each month.

Despite being significantly more costly than the BR-V, the Tucson and Sportage, which were both released within the previous few of years, have done quite well in terms of sales. The Honda BR-V, which on paper is a more practical alternative with two more seats and a large range of components and after-sales service, should have sold at a considerably higher rate than any other pricey crossover on the market. It even has an unrivaled position in the lack of a serious competitor, yet it isn't performing up to expectations.

Some claim that the quality, particularly the inside, is subpar. For a car that currently costs PKR 42.49 lac in the iVTEC-S trim, the materials utilized might have been far better. Keep in mind that the other two previously available variations were withdrawn owing to low sales. Not to add that Honda will discontinue production of this generation of BR-V in India in 2020 owing to low sales. The petrol variants were priced between INR 9.52 lakh and INR 12.85 lac at the time of discontinuation, while the diesel versions were priced between INR 10.16 lac and INR 13.82 lac. Some Indian dealerships even offered an INR 1.0 lac discount on the BR-V during its last days, but it didn't help revive sales.

However, in the Asian area, where seven-seaters are in high demand, the Honda BR-V is a huge hit. In September 2021, the next generation vehicle was presented in Indonesia, touting significant upgrades in design, comfort, and safety. According to Honda, the new BR-domestic V's manufacturing objective is 40,000 units per year, while export production is set at 10,000 units for 30 countries. Customers in Indonesia continue to love the Honda BR-V, with total retail sales of 78,013 units, averaging over 1,300 units each month. The Honda BR-V has sold more than 255,000 units worldwide, with Indonesia accounting for 30% of total sales.

However, BR-V sales in Pakistan are only approximately 4,000 units per year, which is extremely low. Given Pakistan's deteriorating economic position, it appears that Honda would not contemplate launching the new 2nd generation BR-V in the nation. However, given the present sales pattern, continuing to sell the BR-V may not be particularly beneficial for the corporation.