Indonesian Political, Business & Finance News

Honda City Hatchback Stops Production: A Look at Its Track Record

| | Source: KOMPAS Translated from Indonesian | Business
Honda City Hatchback Stops Production: A Look at Its Track Record
Image: KOMPAS

Jakarta — PT Honda Prospect Motor (HPM) has halted production of the Honda City Hatchback, marking the end of an important chapter in Indonesia’s compact hatchback segment. The City Hatchback was first introduced globally in Thailand in November 2019 as part of ‘The City Series’. The model offered a different approach from its predecessors, boasting a 1.0-litre 3-cylinder DOHC VTEC Turbo engine delivering 122 PS and 173 Nm of torque, and meeting Euro 5 emissions standards. Its arrival positioned it as the indirect successor to the Honda Jazz, which had been more popular in Indonesia.

Its Indonesian debut at the end of 2020 immediately recorded impressive results. According to data from Gaikindo, during 2021 (from distribution onward), City Hatchback wholesales reached 9,642 units with production of 8,960 units. After that, its performance began to deteriorate. Throughout 2022, sales fell to 6,197 units, even though Honda introduced the RS-HS variant as a refresh. Production that year stood at 6,041 units.

Downward trend continued in 2023, with wholesales shrinking to 2,881 units and production to 2,779 units. The situation worsened in 2024 when dealer distribution plummeted to 394 units, while production was only 360 units. These conditions occurred amid various dynamics, from market recovery post-pandemic, the momentum of a political year, to rising competition due to early 2024 electric-vehicle price wars. Meanwhile, consumer preference increasingly shifted toward sport utility vehicles (SUVs), narrowing the hatchback market.

In 2025, the performance did not show a significant recovery. Total wholesales for the year were 456 units, while total production was 400 units. The last units were produced in March 2025, totaling 120 units, and the final dealer dispatch was recorded in July 2025 at 66 units. Now, with no 2026 Vehicle Identification Number (NIK) issued and production halted, the City Hatchback has officially stepped off the assembly line. Nevertheless, Honda remains open to the possibility of re-evaluating the hatchback segment if market conditions improve.

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