No More Production Of Honda Cars At Greater Noida Facility

No More Production of Honda cars in Greater Noida Plant
Image Source: The Siasat Daily

HIGHLIGHTS:

  • Honda to cease its Greater Noida facility that was first established in the year 1997.
  • The Japanese carmaker has also discontinued the existing Civic and CR-V in India.
  • It will continue its production work from the Tapukara Plant, Rajasthan.

HCIL first established its production facility at the Greater Noida Plant in the year 1997. Meanwhile, this production facility had 1,00,000 unit capacity and was spread across 150 acres of land. However, with the transfer of the production facility, Honda will also discontinue the present Civic and CR-V models in India.

Further, the Japanese carmaker is also issuing Voluntary Retirement Schemes (VRSs) to the current employees working for the Greater Noida Production facility. Meanwhile, employees working for the other departments will continue to work similarly.

What’s next? 

Honda has decided that it will continue the production of the Honda Amaze, City, Jazz and WR-V on the Tapukara Plant, Rajasthan. The Tapukara facility, on the other hand, has the capacity to assemble around 1,80,000 units. Everyone knows, that Honda City was one of the best-selling mid-size sedans in India. However, it seems Honda is having a tough time in the country with the growing popularity of the Sub 4 meter and Compact SUVs.

Employees are already struggling due to the ongoing pandemic. Meanwhile, due to such hard decisions, the employees are going to suffer more. In recent times, Honda has registered a substantial decline in YoY sales. Therefore, for a major comeback, Honda needs to work hard to complete its portfolio in India. Further, the Japanese carmaker should come with a perfect rival against the likes of Kia Sonet as well as Seltos. Apart from this, Korean carmakers such as Hyundai and Kia are doing really well in India.