Honda Cars India Ltd (HCIL) on Thursday reported a 30 per cent decline in domestic sales at 7,769 units in August.
The company had sold a total of 11,177 units in the same month last year.
Exports stood at 2,356 units last month against 2,262 units in the year-ago month.
"The demand momentum continues to be strong, which is very encouraging and positive for the auto industry as we enter the festive season," Honda Cars India Director Marketing and Sales Yuichi Murata said in a statement.
On the supply side, however, the company continues to face hurdles arising out of global chip shortage, which is affecting production volumes and resulting in extended waiting periods for models, he added.
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