Thai Floods Affect Honda India Production

We had reported yesterday about how Honda was forced to shut production in Thailand after its plant was flooded. The same floods have also lead to stoppage of production of vital parts that were exported to India from Thailand. Honda which recently launched the Brio small car was hoping the new car would spur demand.
The Brio and the new lower priced Jazz have been able to make a mark in the market but the carmaker is no position to deliver new cars. Honda has already stopped taking bookings of the Brio due to these production issues.
The Thai floods will also mean the new face lifted City sedan which was expected to be unveiled in India will also get delayed. Honda is now planning to procure parts from other sources from China and Japan to increase production. However this will be a long drawn process and hence Honda Siel has decided to notify customers about a possible delay in delivery of new cars.
Honda Siel has expressed the enormity of the situation by stating all its models were affected by the floods. The Japanese carmaker will have to manage with available parts until new ones arrive. This situation clearly emphasizes the greater need of localization of parts.
Honda has only delivered 1,000 units of the Brio and has received more than 6,000 bookings. Bookings for the new jazz currently stand at 4,000 units. This is the second time Honda has been severely affected by natural calamities in recent times.


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