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Last Updated : May 06, 2011 07:44 PM IST | Source: CNBC-TV18

Honda and Toyota extend production cuts in Japan

The tsunami effect continues for Japanese car makers Toyota and Honda. It learnt that Honda has extended the production cut till August and Toyota will take a call on it by next week.


The tsunami effect continues for Japanese car makers Toyota and Honda. It learnt that Honda has extended the production cut till August and Toyota will take a call on it by next week.


Honda is already doing about 50% only as far as the production is concerned and this is now going to be extended for another three months. By July or August it will take another call, reports Swati Khandelwal Jain of CNBC-TV18.


Toyota has already cut production by 70%. They are going to take a call depending on their supply schedule that comes in by next week, so things are not looking too good.


Infact this is reflected in their numbers as well, in the month of April, Honda has seen its sales dropping by almost 43%. Overall they just did about 2,000 odd numbers. Out of that the their flagship model Honda City, which used to be the leader in the C-segment has actually seen an all time low of around 1,500 cars only.


Clearly, the others like SX4, Volkswagen Vento are benefiting out of it  have seen better numbers because there has been a long waiting period for the Honda products including Honda City, Jazz and others.


Ceat sees slowdown in Chinese imports


Toyota did about nearly 9,000 units in April, which is good when compared from a year on year basis. It is the largely driven by Etios, which has done good numbers for Toyota.


We will have to wait and watch what happens to both of these companies especially in this competitive environment where everyone is launching products in the C-segment and in the D-segment.


Importantly, Innova has seen some tough competition coming from Mahindra Scorpio in April. The numbers for Scorpio came at around 4,144 units while Innova was just about 3,464 unit.


Also watch the accompanying video...



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First Published on May 5, 2011 08:26 pm
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