Honda slashed FY21 advertising budget by 49% due to drop in sales

The company's net profit nosedived by 88% to Rs 152 crore from Rs 1252 crore

e4m by exchange4media Staff
Updated: Sep 27, 2021 12:08 PM
honda

Two-wheeler manufacturer Honda Motorcycle And Scooter India (HMSI) had cut down its advertising promotion expenses by 49% to Rs 170.8 crore for the fiscal ended 31st March 2021 as against Rs 335.7 crore in the previous fiscal, according to the company's financial data accessed by business intelligence platform Tofler.
The company's revenue from operations saw a 5% dip at Rs 22,422.9 crore compared to Rs 23,569.2 crore. The company's net profit nosedived by 88% to Rs 152 crore from Rs 1252 crore. Total expenses for the fiscal stood at Rs 22,238 crore, as against Rs 22,242.4 crore. 

During the year under review, the company has achieved the sales volume of 4.1 Million units, as compared to 5.0 Million units in the previous year. In terms of value, sales turnover decreased by 3%.

“The unprecedented COVID-19 pandemic impacted not only the global and Indian economy, but also the two-wheeler industry in India. As a responsible two-wheeler manufacturer, Honda addressed the challenges of safety across its ecosystem and for its customers, while striving to maintain its business continuity in this turbulent year. Taking various initiatives in line with the new normal, HMSI digitized business, customer interfaces and entered new segments,” the company said in its annual filing.

“While the first quarter put business on pause mode, the second quarter was about stabilizing the ecosystem and meeting the pent-up demand. Driven by the demand recovery in the 3rd and 4th quarters, Honda 2Wheelers India closed FY20-21 with total sales of 4,073,182 two-wheelers. This includes domestic sales of 3,865,872 units and exports of 207,310 units,” it added.

Celebrating two decades of successful run in the country, HMSI said that Honda Activa became the first scooter brand in India to reach 2.5 crore customers mark in just 20 years. Honda Shine in 125cc motorcycle crossed the 90 Lakh cumulative customers mark. Honda's cumulative sales crossed the momentous 1.5 crore customers milestone in Southern region, breached 70 lakh in North India and crossed the 35 lakh sales milestone in Uttar Pradesh.

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