Honda Siel defers operations at Rajasthan facility

According to a press release issued by the company, Honda Siel Cars India (HSCI) has postponed capacity enhancement and assembly operations at its second plant in Tapukara, Rajasthan. Initially scheduled for Q4-2009, capacity expansion has now been deferred in view of the current economic slowdown and a drop in demand.

According to Takeo Fukui, President and CEO, Honda Motor Co., the company is taking ‘swift and flexible measures to counter the sudden and expansive weakening of the marketplace in all business areas.’

In view of the negative growth in the Indian automobile industry and in the interest of maintaining lean operations, Honda Siel has also decided to reduce production at its plant in Greater Noida. The company claims it’s closely monitoring the market situation and will adjust monthly production volumes to respond to market demands, while ensuring operational efficiencies and low inventory levels.

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