Thursday, 5 May 2011

Honda's production cut in India to last till July

NEW DELHI: Japanese auto major Honda today said its decision to reduce car production in India by 50 per cent from this month is likely to continue for the next three months due to parts supply constraints after the devastating earthquake and tsunami in the island nation.

Honda Motor Co, which is present in India through a joint venture with the Siel Group, manufactures cars at a facility in Greater Noida in Uttar Pradesh that has an installed capacity to roll out one lakh units per year.

"The supply situation is not good at present and so we had announced to cut production by 50 per cent from May, although we started the exercise from middle of last month. We expect this situation to continue for the next three months," Honda Siel Cars India (HSCI) Senior Vice President (Marketing and Sales) Jnaneswar Sen told PTI.

The resumption of normal production after three months will depend on the recovery of suppliers affected by the natural calamity and there is uncertainty on this, he added.

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