Honda Cars India has decided to shut down production at its Greater Noida plant in Uttar Pardesh, as reported by media sources.
The plant has an annual capacity to produce 100,000 unit and was Honda’s first plant in India set up in 1997 with an initial capacity of 30,000. Honda Cars will now produce solely from its Tapukara unit at Alwar District of Rajasthan. This plant has an annual capacity of 180,000 units.
However, Greater Noida plant will continue to house the company’s corporate head, spare parts division and, research and development. The company had taken several measures to increase productivity at the plant in the beginning of this year.
Honda Cars sold 9,990 units in India in November, up 55pc from the previous year.
With auto producers consuming domestic steel and other industrial metals, shutdown of a plant is a big blow for the key raw material suppliers, especially when demand is low from domestic players, market participants told Davis Index.