Honda Motors production to return to normalcy by March this year

Thai floods affected Honda Motors production in India to the extent that in the month of December 2011, Honda Motors produced their lowest number of cars ever in a calendar month in India. For the past six months, Honda India manufacturing unit is not able to produce to capacity because they are short on supplies.

Mr Jnaneshwar Sen, VP, Honda India said, “In this ongoing fiscal we have lost about six months of production due to disruption in supply of components following the tsunami in Japan and floods in Thailand. Now we have found alternate source from Japan and China.”

Honda India plant has already started to gain production momentum. The plant which hardly manufactured any units of City sedan last month, has already manufactured 1,000 units of the same this month. By the month of March 2012, Honda India plant production will return to normalcy.

Mr Sen said, “Our Greater Noida plant has an annual capacity of 1.2 lakh units. Our expectation is that in terms of our capability to produce cars, we could reach 10,000 units a month by March -April as part supplies are getting restored but how much we produce will depend on market demand. As far as the market is concerned, the current response is encouraging but we need to wait and watch other macro-economic factors.

Honda launched their new small car in India, Brio late last year. Honda has even managed to garner enough bookings for Brio hatchback, but due to production constraints, deliveries were not made on time and due to which some buyers have cancelled their bookings. But Honda India still has over 8,000 pending orders for Brio. “For 2012 our priority is to deliver to all the waiting customers for our cars. We have not planned any new models for this year,” Mr Sen added.