Companies

Honda Siel to get back to full production by Sep-Oct

Our Bureau New Delhi | Updated on May 27, 2011




The Greater Noida plant of Honda Siel Cars India would get back to manufacturing at original levels from the forthcoming festive season that begins from around late September-October, the company said on Friday.

Last month, the Japanese carmaker had halved production at its domestic plant from a 60,000-unit-a-year annual capacity on the back of a shortage of components from Japan. Component suppliers and its own plants in Japan had been severely hit after the earthquake and tsunami in March this year. “Honda is currently making adjustments to its production volume in the Asia Oceania region based on the parts supply situation from Japan. The parts supply is now expected to increase gradually and production volume will be increased starting August, with the expectation that the company will begin operating on normal production from the festival season,” a company statement said.

Cheaper Jazz

Honda also said the launch of its first mass segment compact car in India, the Brio, will not be affected by happenings in Japan.

The price for the Jazz premium hatchback may also see a drop after the Brio is launched. This is because both cars will share the same 1.2-litre petrol engine — which, though currently being imported, will eventually be manufactured here with local components.

“The Brio is very important to us and is our complete focus at the moment. It will share the engine with the Jazz, so both because of higher economies of scale and local production, we are likely to see a drop in Jazz pricing,” Mr Seki Inaba, Director, Sales and Marketing told Business Line.

Honda, which has largely maintained calm for most of last year in a market crowded with new launches, is planning to break its mould after the Brio launch. While an entry sedan on the platform of the small car has been reported, the company will also launch the new Civic by middle of 2012.

“The new Civic has just been launched in the US — its biggest market. It should come to India by the middle of next year,” Mr Inaba said.

> roudra.b@thehindu.co.in

Published on May 27, 2011

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