Honda Cars India Ltd (HCIL) on Wednesday said that it will shut down production at its Greater Noida plant and consolidate manufacturing operations for vehicles and components at its Tapukara plant in Rajasthan. The Japanese major said that the move has been taken to realign its manufacturing operations with the goal of improving business efficiency. "Honda Cars India Ltd. (HCIL) today announced realignment of its manufacturing operations with the goal of improving business efficiency. To maintain sustainability of operations by leveraging production & supply chain efficiencies, HCIL has decided to consolidate the manufacturing operations for vehicles and components at its Tapukara plant in Rajasthan with immediate effect for all domestic sales and exports," said the company.
It further stated that all head office functions, India R&D centre and spare parts operations for automobile, two-wheeler and power product business will continue to operate from Greater Noida.
Gaku Nakanishi, President and CEO of Honda Cars said that despite an uptick in sales, the decision to shut down production at Greater Noida plant was taken as the current market conditions remain unpredictable due to the coronavirus pandemic. "The impact of COVID-19 has pressed us to strengthen our constitution, and to achieve the same, HCIL has decided to consolidate its manufacturing operations by making the Tapukara plant a unified manufacturing base," said the CEO. The Tapukara plant in Alwar spreads across 450 acres and has the production capacity of 1.8 lakh units every year.
Nakanishi sounded optimistic about the recovery of the Indian market and said that, "India is extremely important market in Honda's global strategy and HCIL is committed to bring its latest and advanced technology models including electrified vehicles in future."
Once the lockdown eased, Honda ramped up its daily production to the pre-COVID level, stated the company. Monthly sales have seen growth in the last three months and HCIL showed good recovery in the festive period. It said that the sales momentum is expected to continue in the coming months.
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