In a big development, Honda Cars India is believed to cease production at its Noida manufacturing facility. This information was revealed by ET Auto today. The Japanese automaker is ending production at the Noida plant after two decades plus of operations. The brand’s corporate and R&D divisions will continue to run as usual from the facility. Till the month of November 2020, Honda City, Civic and CR-V were being produced at the facility. In December, the company completely ceased the production of the mentioned 3 vehicles. As per the report, the production is being transferred to Tapukara facility in Rajasthan. Currently, it has a total capacity of 1,80,000 units.
The surprising move comes into the picture after the company initiated the voluntary retirement scheme (VRS) for its permanent employees at the Greater Noida manufacturing plant. The VRS rule went into practice from January earlier this year. At the starting, Noida plant had an annual capacity of 30,000 units which was later increased to 1 lakh units. Majority of the employees had opted for VRS while the remaining had been transferred to the Tapukara production facility.
The automaker might have taken the hard decision to close the Noida plant due to a decline in growth. Low sales numbers, closure of dealerships and delayed launches were the recurrent theme in 2020 due to the COVID-19 Pandemic. The pandemic was a big blow to Honda as its share in the market dipped to half of what it had captured in 2015. This year, Honda Cars India is making efforts in earning customer’s trust with a slew of new launches like WR-V Facelift, Jazz facelift and the New-Gen Honda City.
The manufacturer had started operations in 1997 in the form of joint venture with Usha International of the Shriram Group. In 2012, it discontinued the JV and changed its name from Honda Siel Cars India to Honda Cars India Ltd. The auto giant had invested around Rs 9,000 crore on both the plants.
Source : ET Auto