Honda to cut-down production in India

Friday 01 April 2011, 00:00 AM by Vikas Yogi

The Japan based leading car maker Honda said on Thursday that it will temporarily cut-down the manufacturing of its cars in India from the month of May as the supply of the essential parts has been bottle-necked following the massive earth-quake and tsunami in Japan, last month.

At present, Honda sells its cars in India in partnership with Siel Group. The company has a manufacturing facility in Greater Noida (Uttar Pradesh) which has a total manufacturing capacity of one lakh units. The Greater Noida facility of the company is currently underutilized as it rolls-out only 5,000 units per month while having an installed capacity of over 8,000 units per month.

In a statement given to PTI, Honda Siel Cars India (HSCI) Vice President (Marketing) Jnaneswar Sen said "Till April, we can continue our production. After that there will be temporary reduction of production."

Moreover, the company has established a new manufacturing plant at Tapukara in Rajasthan, with an annual manufacturing capacity of 60,000 units.

In a recent statement, the company said, "Honda India is striving to continue production at each automobile production plant. However, the possibility of a temporary reduction of production volume due to the short supply of some parts in the future is being carefully examined at each plant."

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