Indonesian Political, Business & Finance News

Honda Halts City Hatchback Production: Here’s Why

| | Source: KOMPAS Translated from Indonesian | Business
Honda Halts City Hatchback Production: Here’s Why
Image: KOMPAS

JAKARTA – PT Honda Prospect Motor (HPM) has officially halted production of the Honda City Hatchback in Indonesia and confirmed there will be no Nomor Identifikasi Kendaraan (NIK) for the 2026 model year.

Sales, Marketing and After Sales Director HPM Yusak Billy said the decision was taken as demand in the national hatchback segment has weakened in recent times.

“City Hatchback, production has stopped, but sales still occur because demand for hatchbacks is currently low. If people want to buy, there are still units at dealers,” Billy said in Jakarta on Tuesday, 3 March 2026.

This means the production line has been stopped, but stock remains available across the dealer network as long as inventories last.

Billy emphasised that this move does not automatically mean the model is permanently discontinued. Evaluations will continue, taking market developments into account.

“Let’s not talk about total discontinuation. We will see how the market develops; that will determine whether we need it. If the market needs it, wants it, why not?” he said.

When asked specifically about the 2026 NIK, Billy replied briefly that the company is no longer conducting production activity for the model.

“There are none left,” he said.

According to data from the Gabungan Industri Kendaraan Bermotor Indonesia (Gaikindo), the City Hatchback was last produced in March 2025, or the end of Q1 2025, at 120 units.

The City Hatchback has traditionally operated in the compact hatchback segment. In recent years, the hatchback market has shrunk as consumers have shifted towards sport utility vehicles (SUVs).

With no 2026 NIK and production halted, the model’s viability will depend on future market dynamics.

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