Honda confirms production halt in Greater Noida, eyes sustainable business model
- Honda says while past three months have seen an uptick in sales, Covid-19-related factors have contributed to decision to consolidate manufacturing operations.
- Honda cars will now be solely made at the Rajasthan facility in Tapukara.
Honda Cars India on Wednesday confirmed it has brought production operations at its Greater Noida plant to a close in a bid to streamline and improve sustainable business efficiency. Largely necessitated by Covid-19-related factors, the car maker says it is felt imperative to consolidate manufacturing in its Rajasthan facility - in Tapukara plant.
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While head office functions, India R&D Centre and spare parts operations will continue to operate from Greater Noida, the production ops will be solely from the Tapukara facility now. "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 President and CEO Gaku Nakanishi in a statement released by the company. "HCIL continues to believe in the resilience of the Indian economy and hope for a quicker recovery of the market. 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."
The Tapukara plant spreads over 450 acres with an installed production capacity of 1,80,000 units per annum and is an integrated manufacturing unit.
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Honda had several launches lined up for this year, including the fifth-generation City, updated Jazz and WR-V. And while Covid-related challenges have been massive for the automotive industry at large, Honda informs that the last three months have seen 'an uptick in sales.'