Honda Cars Closes Greater Noida Plant, Employees Opt For VRS

Honda Cars Closes Greater Noida Plant, Employees Opt For VRS

Honda Cars India Ltd. (HCIL) today announced that it has stopped production in the Greater Noida plant. However, all Head Office functions, India R&D Centre, and Spare Parts operations (including warehouse) for Automobile, Two Wheeler, and Power Product business will continue to operate from Greater Noida.


The company is realigning its manufacturing operations with the goal of improving business efficiency. To maintain the sustainability of operations by leveraging production & supply chain efficiencies, HCIL has decided to consolidate the manufacturing operations for vehicles and components at its Tapukara plant in Rajasthan with immediate effect for all domestic sales and exports. 


Mr. Gaku Nakanishi, President & CEO, Honda Cars India said, “Despite an uptick in sales in the last three months, the current market conditions remain unpredictable for the industry at large. The impact of COVID-19 has pressed us to strengthen our constitution and to achieve the same, HCIL has decided to consolidate its manufacturing operations by making the Tapukara plant a unified manufacturing base.”


With the resumption of operations after the COVID-19 led lockdown, HCIL successfully ramped-up its daily production volume to pre-covid level from September 2020 and has been consistently witnessing monthly sales growth for the last three months. HCIL sales showed good recovery in the festive period and the company expects to sustain this sales momentum during the coming months.


HCIL had already initiated issuing lucrative voluntary retirement schemes (VRS) to its employees across manufacturing and related operations from January 2020, to streamline its workforce as it slowly moved ahead with the ceasing of operations 1,00,000-unit capacity plant, established in 1997.


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