Honda and Volkswagen discontinue the Accord and Passat

Honda and Volkswagen have stopped production of their luxury saloons, the Accord and the Passat. The poor demand of the products has led to this outcome. Earlier this year we had seen Honda drop the curtains on the Civic as well. This move clearly shows that both the car manufacturers are focussing on products in the lower segments

The Honda Accord is priced at Rs. 25 lakhs while the Passat is available from Rs. 26-32 lakhs. Looking at the price points, people do tend to look at manufacturers like Mercedes, BMW  and Audi and the pricing hence becomes very competitive.

The falling rupee too played a part by increasing the cost of production as some of the components for the Accord and Passat are imported.

Honda doesn’t plan to bring any updated version as yet but we might see the Passat getting a makeover. Let us see what happens.