It was speculated that Honda could close one of its manufacturing plant in India as part of a its plans of restructuring business. A new media report claims that Honda has already stopped producing cars at its manufacturing facility in Greater Noida Uttar Pradesh.
The company has shifted the entire production line to the Tapukara plant in Rajasthan. However, Honda’s corporate office and R&D (Research & Development) department will continue to operate from the Greater Noida Plant. The current-gen Honda City, CR-V and the Civic were produced at the facility till end of the November; however, there is no production at the facility in December, 2021.
Honda has also announced a voluntary retirement scheme (VRS) for its permanent employee working at the Greater Noida manufacturing plant, effective from January 28, 2020. However, Honda is yet to make an official announcement on the same. The Greater Noida Plant was started with an annual production capacity of 30,000, which later upgraded to 1 lakh units.
Around 2,000 people are working at the manufacturing department with 1000 permanent employees. Honda’s Tapukara plant has a production capacity of 1.8 lakh units. The company is going through a tough time in the past two years, as the market share shrinks to 3 percent from 7 percent in FY15.
Source – ET Auto
