This is part of the Japanese automaker’s plan to restructure its global operations amid a pandemic impacting Honda.
Reuters reported that on December 30, 2020, Honda Europe has decided to stop selling new cars to official dealers in Russia since 2022.
However, the Japanese brand will remain in the Russian market by selling motorcycles and electrical equipment. According to Reuters, they will also retain operations related to their after-sales services.
Unlike rivals like Toyota and Nissan, Honda has no manufacturing facilities in Russia, where it sold just 79 cars last month – a 50% decrease year-on-year. Honda currently sells only two models in Russia, the Honda CR-V and the Honda Pilot.
Moreover, Honda’s overall sales in Russia this year as of November 2020 have dropped 15% to 1,383 units, less than an odd fraction of the 1.3 million Honda units sold. demand at the same time.
Honda’s plans in Europe also include ditching pure gasoline and diesel versions from 2023, aimed at boosting sales of hybrid or all-electric vehicles.
According to Ian Howells, the company’s chief executive, Honda also believes in alternative fuel and is not ready to use a fully electric engine.
“We see this as a kind of transition or bridging technology to bring us to the technology behind the battery, a new kind of energy,” Howells said.