Honda to cut output by up to 30% in this country, blame it on supply snag

  • Honda's decision to reduce production output comes on the back of severe supply chain crisis.

Honda readjusted its production plan multiple times.
Honda readjusted its production plan multiple times.
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Honda Motor Co. has said that it would slash vehicle production by up to 30 per cent in Japan in August this year. This decision comes as the auto major has been facing persistent supply chain and logistical issues. The automaker has informed that two production lines at its Suzuka facility in western Japan will reduce production output by about 10 per cent this month and by about 30 per cent in early August. This comes as a significant production cut compared to the automaker's previous plans.

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Honda also said that its assembly plant in Saitama prefecture, north of Tokyo, will reduce vehicle production by about 10 per cent early next month. The Japanese vehicle manufacturer has not disclosed its monthly production target yet.

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The semiconductor shortage and other Covid-19 pandemic-induced disruptions including the supply chain crisis have impacted the auto industry massively. It's been two years since the automakers have been facing this disruption. Several automakers have readjusted their production plans multiple times due to the crisis. Honda too is not out of that block. The latest announcement of vehicle production output comes in line with that. Honda adjusted its production plan in May but had said it would return to normal in early June.

Another Japanese car major Toyota Motor Corp said earlier this week that its global production for August would be about 700,000 units, down roughly 18 per cent from its previous plans at the beginning of the year.

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First Published Date: 24 Jul 2022, 14:15 pm IST
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