Honda Cars India Limited has closed its factory in Greater Noida, Uttar Pradesh. The company has issued a statement informing about this. Honda said that the decision to stop production at the plant that came into existence in 1997 is part of an effort to reorganize manufacturing activities. With the closure of the Greater Noida factory, production of Honda’s CR-V and Civic cars in the country has also stopped. Both models were being manufactured in this factory.
The company has said that though all the operations of the head office, India Research and Development Center and spare parts operations including warehouse for automobiles, toweler and power product businesses will continue to operate from Greater Noida.
Manufacturing activities will be strengthened at Tapukara plant
HCIL also said, “To strengthen the operations by leveraging the capability of production and supply chain, the company has strengthened manufacturing activities for vehicles and components in Tapukara, Rajasthan with immediate effect on domestic sales and exports.” The decision has been made. The installed production capacity of Honda’s Greater Noida plant is one lakh units per annum. On the other hand, the Tapukara factory has a capacity of 1.8 lakh units per annum. This Rajasthan-based factory employs about 5,500 employees.
Current market situation uncertain
HCIL President and CEO Gaku Nakanishi said, “Despite the sales growth for the last three months, the current market situation for the industry as a whole remains uncertain. The COVID-19 effect has forced us to strengthen our position and to achieve this HCIL has decided to strengthen manufacturing activities by integrating the Tapukara factory. He said that the company remains confident about the strength of the Indian economy and the market is expected to be back on track fast. India is an important market under Honda’s global strategy and HCIL is committed to bringing its most cutting-edge technology models including electric vehicles in future.