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Honda Cars stops production at Greater Noida manufacturing facility

Honda Cars has decided to consolidate manufacturing operations for vehicles and components at its Tapukara plant in Rajasthan with immediate effect for all domestic sales and exports. All Head Office functions, India R&D Centre and Spare Parts operations, however, will continue at Greater Noida.

December 23, 2020 / 16:28 IST
File image of employees working at the production line at the Honda plant in Greater Noida. (Image: Reuters/Adnan Abidi)

Honda Cars India Ltd (HCIL) on December 23 said it had stopped production at its Greater Noida facility to realign its manufacturing operations with the goal of improving business efficiency.

"In order to maintain sustainability of operations by leveraging production and supply chain efficiencies, HCIL has decided to consolidate manufacturing operations for vehicles and components at its Tapukara plant in Rajasthan with immediate effect for all domestic sales and exports," the carmaker said in a statement.

"The company has stopped the production in Greater Noida plant. All Head Office functions, India R&D Centre and Spare Parts operations will continue at Greater Noida," the statement added.

Most workers at the Greater Noida plant have either taken VRS or have been transferred to Alwar, CNBC-TV18 had reported on December 19. 

On December 1, the company had said it had a “rewarding festive season” and as it clocked monthly domestic sales of 9,990 units in November, as against 6,459 units in corresponding month in 2019.

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Commenting on the sales performance, Rajesh Goel, Senior Vice President and Director, Marketing & Sales, HCIL had said, “Although there are continuing challenges of pandemic and its impact on overall consumer sentiment, the rise in personal mobility is expected to help us sustain our sales momentum during the rest of fiscal year”.

Japanese conglomerate Honda’s Indian subsidiary was established in 1995.

Moneycontrol News
first published: Dec 23, 2020 04:28 pm

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