Honda India Continues with Production Cut Down in India

Honda India Continues with Production Cut Down in India New Honda Jazz
author image Rishi
Monday 23 February 2009, 00:00 AM

Honda had cut down its production in India few months back with its output coming down to 45 percent of its full production capacity. It intends to continue with its cut down for next six months as well. The company has been experiencing extreme slow down amidst the global downturn and has shut down its production at several locations worldwide. In India, it had cut down its production to 200 cars per day in a single shift from earlier production of manufacturing 380 cars per day in two shifts.

"We have already adjusted our productions. Today our inventory level for India is quite appropriate -- two weeks for our own hand and two weeks on dealers' side," Honda Siel Cars India President and CEO Masahiro Takedagawa said.

Honda has a joint venture in India with Siel Cars India Limited. It still plans to go ahead with its plans to launch Honda Jazz in India. It is also thinking of increasing the price of its cars in India due to rising input costs.

"After the market recovers and once we decide to increase production, it takes about two months to go back to full production again. Probably for the next six months, single shift operations will continue," said Takedagawa about the continued production cut down.

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