Honda stalls production of the City?

Honda India has turned the heat on the competition with the introduction of products like the Amaze, City and recently the Mobilio. According to the June sales figures, Honda is the third largest carmaker in India. In a rumour that cannot be dismissed as just another distressed customer story in online forums. The person claims to have spoken to the sales head of a dealership in Delhi who informed that Honda has stalled production of the City for August and September. 

If this rumour turns out to be true then it hints at production crisis that Honda might be facing. The company has two manufacturing facilities in India at Delhi and Tapukara, Rajasthan. The primary plant in Noida near Delhi produces the City, Brio and the Mobilio, whereas the plant in Tapukara makes powertrains and the Amaze compact sedan. Last month Honda announced that the production capacity in this plant will be increased by adding another assembly line within 7-8 months which will help it achieve the target of two lakh units and make the Mobilio there. With its sales currently averaging between 15,000-16,000 units it is already poised to achieve its target, discounting  the Mobilio. 

The launch of the Mobilio may have exposed its production flaws as the company now has to manufacture the City, the Mobilio and also the Amaze in the same plant which has an installed capacity of 1,20,000 units a year. Honda sold 7,715 units of the City, 7,073 units of the Amaze and 1,438 units of the Brio in June 2014, of which the City and Brio are made in Noida which indicates that the factory is running close to its full capacity. 

Honda has not confirmed this news, but it is inappropriate to make assumptions based on a dealer or a customer’s comment. But, we have listed out the possibilities if this rumour were to be true.

Read about Honda Cars India second plant in Tapukara

Source: Team bhp