Honda to close down car unit in Greater Noida

Hit hard by stiff competition and difficult enterprise surroundings, Honda Motor Cars has decided to close down its manufacturing unit at Greater Noida in Uttar Pradesh. The stop comes weeks after Harley Davidson closed down its plant in Haryana.

Honda sells vehicles such City, Amaze, WRV and Jazz, and can now manufacture automobiles at its Alwar plant, which has an annual capability of 1.eight lakh items, a lot greater than the close to 1 lakh items the corporate offered within the home market in 2019-20.

Set up 1997, the Greater Noida plant with a capability of 1 lakh items yearly has been one of many oldest automotive vegetation in India. The cash strapped firm is going through a tricky time in managing prices and has taken this step to economise and reduce pointless expenditure.

Honda’s exit from the scene comes months after the corporate supplied a profitable VRS to a big part of its staff because it began taking steps to chop its dependence on the manufacturing unit.

Sources said whereas the manufacturing can be halted on the 150-acre facility, a considerable amount of official work and different actions can be carried out from the situation. It is learnt that Honda will continue to have its R&D set-up, corporate office and spare parts operations at the Greater Noida location. Functions such as purchase, finance, service, marketing and sales, PR and HR would also continue from the location.

Reasoning the corporate’s poor efficiency, business analysts stated that Honda has generally been late in responding to competition and changing market needs which has led to the model going through a troublesome interval. The firm, which had a number of top-management rejigs prior to now, was initially late in introducing diesel engines and automobiles in India that had impacted its enterprise severely.