Honda announces 50 per cent cut in India production

Japanese auto major Honda Motor Co Ltd today announced a 50-per cent reduction in its vehicle production in India beginning May, due to a shortage of components in the wake of last month's devastating earthquake and tsunami in Japan.

Honda Siel Cars India Ltd, the Indian joint venture of Honda Motor Co, today announced production cut at its Greater Noida plant by about 50 per cent from May 2011.

Honda Motor co had announced a cut in production at its plants across Japan following a shortage of components due to the impact of the Tsunami on its parts suppliers.

"We are experiencing gaps in our supply chain due to the situation in Japan, resulting in production cuts.

We are moving to single shift operations from May 2011, while carefully monitoring the situation. We plan to get back to normal production as soon as supplies normalise," Jnaneswar Sen, senior vice president - marketing and sales, HSCL, said.

"The situation with parts supply in Japan remains fluid, production of component parts and vehicles at Honda plants is at approximately 50 per cent of the original production plan," the release said, adding, "Honda will carefully monitor the situation and manage its operations accordingly."