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Honda Offers Early Retirement To Permanent Employees 

Honda Offers Early Retirement To Permanent Employees 

Honda Motor Co. has reportedly offered voluntary retirement to some of its permanent staff at its motorcycles and scooters unit in India due to the slowing demand following the covid-19 pandemic.

 

Honda Motorcycles and Scooters India (HMSI), one of the largest manufacturers of two-wheelers in India, said that it is planning to realign its production strategy for improving its operational efficiency and ensuring longterm sustainability of the business.

 

“The Indian auto industry is going through an exceptionally challenging phase from the past three years considering the prolonged demand slowdown and overall economic fallout from the covid-19 pandemic," the company said in a statement.

 

In December 2020, Honda had said it was planning to raise prices of the entire range of its passenger and commercial vehicles from January 1, 2021. Similar to automakers across the globe were pandemic-battered, companies in India too, have been facing slowing demand since 2019.

 

The decision comes after the Japanese automaker spoke of closing one of the two car-plants in India owing to the falling demands. HMSI made the scheme available to its employees’ union via a letter dated 5 January, reported Reuters earlier on Wednesday.

 

The letter informed that the scheme was being offered to permanent employees with 10 years of service or are over 40 as of 31, January 2021. A senior manager or vice president may be eligible for a payout of ₹72 lakh($98,488), depending on the number of years of service.

 

HMSI had 7,000+ employees in its four plants in India as of 31 March 2020, according to a filing with the US Securities and Exchange Commission. 

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