Why did Honda stop the Accord in India?
Honda stopped selling the Accord in India mainly because the model failed to find buyers at a price point that made sense in a price-sensitive market, while Honda shifted its focus to higher-volume SUVs and compact cars to improve profitability.
In the mid-2010s, Indian customers increasingly favored sport-utility vehicles (SUVs) and smaller, more affordable sedans over premium D-segment offerings. That market shift, combined with the Accord’s relatively high cost and limited local backing, led Honda Cars India to rationalize its lineup and exit the model. The decision reflects broader industry dynamics in India rather than a single regulatory or technical obstacle.
Market dynamics that shaped the decision
Context and factors at a glance
Below is a look at the market forces analysts cite as driving Honda to discontinue the Accord in India.
- Premium pricing in a value-conscious market: The Accord carried a price premium that constrained its addressable audience in India, where buyers often weigh total cost of ownership against more affordable options.
- Shift toward SUVs and crossovers: Indian buyers increasingly preferred larger, versatile vehicles, diminishing demand for large, feature-rich sedans like the Accord.
- Low sales volumes and economics: The Accord logged relatively modest monthly volumes, making localization, parts supply, and aftersales support less attractive for a high-cost, low-quantity model.
- Competitive landscape within the segment: The D-segment and premium sedan space faced pressure from both local and global rivals, as well as Honda’s own lineup, which offered alternatives with potentially better appeal and pricing.
- Cost of meeting evolving standards: Upgrading a premium sedan to comply with newer emission and safety norms added to the total cost of ownership, further eroding the business case for the Accord in India.
Conclusion: Taken together, these market dynamics created an unfavorable business case for continuing the Accord in India, prompting Honda to realign its product strategy around higher-volume models.
Honda's broader product strategy in India
Strategic pivot toward higher-volume models
Honda’s Indian strategy shifted toward models with stronger domestic demand and better economies of scale, reshaping the company’s sedan and SUV lineup.
- Emphasis on high-volume models: The City (and its variants), Amaze, and Jazz have been central to Honda’s India lineup due to stronger sales and lower total cost of ownership.
- Focus on SUVs and crossovers: The company prioritized SUVs such as the CR-V and HR-V where there was clearer demand, aligning with a global trend toward utility vehicles in emerging markets.
- Rationalization of the portfolio: Non-core or low-volume models, including the Accord in India, were deprioritized in favor of products with better local traction and profitability.
Conclusion: The Accord was a casualty of Honda’s shift to a more volume-driven, SUV-focused strategy in India, intended to maximize reach and profitability.
Regulatory and cost considerations
Compliance costs and market realities
Regulatory changes and the associated costs of bringing a premium, older-platform sedan up to current standards weighed on the model’s viability in India.
- BS-VI transition and upgrade costs: Upgrading engines, exhaust systems, and safety features to meet newer norms can be expensive for a low-volume model.
- No diesel option and market preferences: The Accord’s petrol-only configuration limited appeal in a market where diesel variants have historically driven demand in similar segments.
- Localization and logistics costs: Maintaining a premium sedan with limited volume increases per-unit costs, impacting competitiveness against higher-volume models.
Conclusion: Regulatory and cost pressures reinforced the business case for winding down the Accord in India as Honda pursued more scalable options.
Impact on consumers and the brand
What the exit means in practice
The exit reshaped the local market for premium sedans and signaled a broader shift in Honda’s Indian approach toward models with broader appeal and quicker turnaround on investment.
- Limited alternatives in the premium D-segment: Prospective buyers lost access to the Accord’s blend of space, comfort, and features unless considering other brands or imported options.
- Brand positioning and product mix: Honda’s emphasis on City-based sedans and SUVs aligned with consumer demand and improved dealer economics, influencing perceived brand focus in the market.
- Used-car and aftermarket implications: The discontinuation impacted availability of parts and service for the Accord in the Indian market, with a potential shift toward second-hand markets or imported alternatives.
Conclusion: For consumers, the Accord’s exit narrowed the field in the premium sedan segment, while for Honda it underscored a strategic move toward higher-volume models better suited to India’s evolving tastes and economics.
Summary
Honda’s decision to discontinue the Accord in India was driven by weak demand for a premium D-segment sedan in a price-sensitive and rapidly changing market, a strategic pivot toward higher-volume SUVs and compact sedans, and the cost pressures of updating a low-volume model to meet evolving regulatory standards. The move reflects a broader trend of automakers pruning low-demand nameplates to concentrate investment in segments with stronger domestic traction, while continuing to adapt to consumer preferences that favor practicality, value, and versatility.
What is the biggest problem with the Honda Accord?
Mason Auto Repair
- The Age-Old Transmission Tribulation. One of the Honda Accord's most talked-about issues revolves around its transmission.
- Electrical Malfunctions Unplugged.
- Braking Bad.
- Steering Clear of Trouble.
- Air Conditioning.
- Suspension.
- Engine Issues.
Why was the Honda Accord discontinued in India?
Honda has axed its flagship sedan the Accord in India, it has been discontinued owing to low demand. According to a report in Economic Times, this news was confirmed by Mr. Jnaneshwar Sen, senior vice-president for marketing and sales at Honda Cars India.
Is Honda coming back to India?
Honda is preparing a sweeping revival for its Indian operations, outlining an aggressive product plan that will see the launch of ten new vehicles by 2030, seven of which will be SUVs. The move underscores the Japanese automaker's renewed commitment to India.
Why did Honda Civic discontinue India?
Honda Civic
It was also re-introduced in 2019 but the declining sales and shutdown of the Noida manufacturing plant led to its discontinuation in the Indian market.
