Honda Siel Motors India, the Indian unit of the Japanese car manufacturer, Honda Motors has announced that car manufacturing will be hit badly in the month of December 2011 due to decline in supplies from their suppliers in Thailand.
Honda India executive stated that they are facing supply constraints which will affect their production hugely. Honda India has already stopped the production of their bestselling sedan, City due to these supply constraints. Newly launched Honda Brio small car production too will be affected, but at a little later stage.
Honda Motor manufacturing plant’s output capacity will be slashed by 95% in the month of Dec 2011 as the manufacturer will produce only a few hundred cars next month. Last month, Honda manufactured 6,000 units at their manufacturing plant. In order to restore supplies, Mr Jnaneshwar Sen, VP, Honda India, said, “We are looking at China and Japan very keenly. We hope to firm up things soon and return to normalcy in the coming months, though nothing can be confirmed as of now.”
December 2011 will probably be the worst month for Honda India as far as production is concerned. Depending on the remaining raw materials/supplies, following is the number of cars Honda will be able to manufacture in December 2011. City production is already at zero, Brio will be stopped from December, Jazz will have 250 units, 100/200 units of Accord and Civic. Honda source said, “The situation is very bad and December could perhaps be one of the worst months for Honda in India.”