Decoding Success: Honda Elevate, a success story or not?

In the rapidly growing Indian automotive market, Japanese carmaker Honda made a strategic move in FY ’24 as it tapped into the growing SUV segment with its debutant, the Elevate. Indeed, Honda’s entry into the compact SUV market with the model may have come later than some anticipated. However, as the saying goes, “better late than never.” The Amaze and City models had been holding their own in a sedan market that has been gradually losing ground lately.Yet, despite their individual sales numbers, there was a noticeable gap in the company’s lineup on our shores – a gap that the Elevate was meant to fill.
Greetings, everyone. This is TOI Auto’s new ‘Decoding Success’ series in which we will be analyzing the performances of cars available in India. As part of this series, we will be speaking to the manufacturers, dealers, industry experts and even prospective customers to know their sentiments about a car and we’re starting this series with the Elevate.

Honda Elevate: Not potent?

The Elevate, though not loaded with flashy features, was designed to prioritize functionality over swanky aesthetics. Rather than focusing solely on the flamboyant host of features most modern SUVs get these days, the company told us that it aimed to deliver value by providing features that catered to the practical needs of consumers.

This approach resonated with many, as the Elevate was successful in garnering positive feedback for its robust boxy design, ‘elevated’ road presence, spaciousness, and comfort.

Honda Elevate: Sales so far

From September 2023 until March 2024, Honda has sold over 33,600 units of the Elevate domestically. In fact, the model has contributed to an impressive 39 percent to the company’s overall sales in the last fiscal. Speaking of the export markets, the model has emerged as the second-largest contributor and in line with the government’s ‘Make in India, Make for the World’ initiative, the model is being shipped to its own home, where it is being sold as the WR-V. Besides that, it is also being exported to South Africa and Nepal.

Honda Elevate: Sales pattern

Now, while the sales number in a glance looks decent, the sales have actually been dipping on the MoM basis. In September last year, the company sold 5,685 units of the SUV in the domestic market – its highest ever so far. However, following that month, the sales appeared to have shrunk a bit as the company ended the year with 4,367 units in December. Next month, the company started the new year on a positive note selling some 200 odd units more than its Dec figures; however, it was followed by a substantial fall in Feb and March where the OEM sold 3,184 and 3,277 units, respectively.

Honda Elevate: Decline not something as it appears from outside

Now, you might think that the depleting sales numbers are a sign of waning consumer interest but no, the company said that the decline has rather stemmed from its inability to match the supply with demand and other key factors such as a fraction of the production units being aligned for export markets from December.
Besides that, the company had to upgrade its assembly line to make way for safety features such as mandatory six airbags, 3-point ELC (Emergency Locking Retractor) seatbelts and seatbelt reminders for all five seats, all of which were made a standard fitment from this month itself. The company says that it is optimistic that the sales numbers will grow starting from the first month of FY2025. On the other hand, our dealer sources have told us that the demand and queries for the model is high and once Honda sorts things out on its production end, the sales will continue to grow thereafter.

Honda Elevate: What’s in demand

Analyzing sales trends further revealed insights into consumer preferences, with the top-tier ZX grade commanding the majority share of Elevate sales. Additionally, the sales distribution between manual transmission (MT) and continuously variable transmission (CVT) variants showcased a preference for the convenience offered by CVT, which accounted for 63% of total sales.
Geographically, sales data indicated a balanced distribution across different tiers, with Tier 1 cities contributing the largest share followed by Tier 2 and Tier 3 cities.
In conclusion, the Honda Elevate has emerged as a strong contender in the SUV segment and as Honda addresses production challenges and continues to enhance the Elevate’s offerings, it is likely to solidify its position as a successful model within the company’s lineup. That said, the company needs to bring more SUVs and that too quickly.