In a bid to break even the huge losses suffered by the Japanese auto giant Honda during the recent floods in Thailand, the government of Thailand has offered a waiver of import duty to Honda on both machinery and complete built up units. The waiver of import duty will come into effect for a period of over 7 months (From October 25th 2011 to June 30th 2012). The announcement was made by Mr. Wannarat Charnnukul, industry minister of Thailand.
It is to be mentioned here that Honda is one of the most affected car maker in Thailand due to the massive floods of last month. The company incurred huge losses after it witnessed a complete shutdown at its manufacturing plant based at Rojana Industrial Park in Ayutthaya. This is a massive production plant of Honda that has a capacity to manufacture 240,000 cars per annum. The production at this plant is on a complete halt since October 2011, causing huge losses to the car maker.
Besides the halt of production, a number of already produced Honda cars lying at this plant have been damaged badly due to the heavy flood. Though the drainage operations are continuously being conducted at these plants, but it will take a few months time before the company resumes normal production levels at this plant.
