Honda the Japanese carmaker continues to handle the reduced demand for cars with low production. It has already cut production of its best selling Indian cars to reflect the market demand. It has added that with the economic conditions continuing to be dull it will not increase production in the near future.
Recent fears on a recession and the devaluation of the Indian Rupee has lead to decreased demand for cars. Honda has stated that it does not want to stock pile cars and instead prefers to build as many as the market currently demands.
Honda recently announced its decision to carry on with the reduced production to battle the market slow down. With the devaluation of the rupee in the international market and the looming fear of recession, Honda has also faced decreased demands. It is only logical that the company decides to reduce production, failing which may result in an inventory build up.