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Honda Cars India has stopped production at its Noida plant in Uttar Pradesh. The company has decided to decommission the production operation at its Noida facility. The production lines will be moved to the Tapukara facility in Rajasthan.
Note: Images are for representative purpose only.
According to the report from ET Auto, Honda's corporate office and R&D department present at the Noida facility will continue to operate from the same location. The company is yet to release an official statement for the same.
The report also reveals that Honda decided to terminate operations at Noida after announcing a voluntary retirement scheme (VRS). The company offered VRS for its permanent employees working at the Greater Noida manufacturing plant.
The Greater Noida manufacturing facility was started two decades ago with an annual production capacity of 30,000 units. The company later invested and increased the facility's production capacity to 100,000 units. In the month of November 2020, Honda produced the City, the CR-V, and the Civic model sold in the country.
The Noida plant employed about 2,000 people in the manufacturing department. Now the company has about 1,000 permanent employees. The workforce at the Noida plant have either opted for VRS or got transferred to the Tapukara plant.
In December there was no production at the Noida facility. The entire production line has been shifted to the Tapukara plant in Rajasthan. The new facility has a total production capacity of 1.8 lakh units annually.
Honda started its four-wheeler operation in 1997 in a joint venture with Usha International of the Shriram Group, which was called ‘Honda Siel Cars India'. The company ended the JV in 2012 and changed its name to Honda Cars India Ltd for its operations in the country.
Honda Cars India (HICL) was the third-largest carmaker earlier in the decade with rising monthly volumes. It overtook homegrown brands like Mahindra in monthly sales and had its best performance in sales during 2015. However, due to the ongoing pandemic, the company's market share now stands at 3 per cent.
Honda continues to rely on the popular Amaze model to bring in sales volume for the brand. As a result, the company offer the Amaze in both petrol and diesel engine options catering to a wider customer base.
Also in a strange turn of events, the company continues to offer the fourth-gen City despite the launch of the fifth-gen model in the Indian market. Both generation models are currently being offered in the line-up to attract more sedan customers in the country.
Thoughts About The Honda Cars Noida Production Plant Getting Shutdown
Honda had two manufacturing facilities, which would certainly increase the cost of operations in the country. As a result, the company might have decided to concentrate all its resources at one location for more cost-effective production operations in the country. Honda Cars India is yet to make an official statement on recent developments in the country.