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Honda Defers Expansion in India

By Motortrend India Staff   |   18 December,2008

Japanese car manufacturer Honda has decided to defer its expansion plans in India along with reducing the production at the facility situated in Greater Noida, near Delhi.

The company had earlier planned to establish a new facility at Rajasthan with an investment of Rs 1000 Crore. This plant was initially scheduled for Q4 of 2009 but now due to the current market downturn, Honda plans to postpone the expansion plan. The company has already invested a sum of Rs 600 Crore and delays the remaining portion of the planned investment.

Honda’s official said, “While work on shed is still continuing and structures will be ready, installation of equipment will not be happening.” He also stated that the production capacity at the Greater Noida plant would also be reduced with any specified quantum in view of the current car market slump and in the interest of maintaining slow operations.

In response to the present situation, one of the Honda’s official also said, “We are closely monitoring the market situation and will adjust monthly production volumes to respond promptly to market demands while ensuring operational efficiencies and low inventory levels.”

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