Honda, the Japanese auto major on Dec 17 said it has decided to defer the expansion of capacity at its second Indian plant in Rajasthan besides cutting production at the existing facility at Greater Noida, near Delhi.
The company, which runs its Indian operations through a joint venture with the Siel Group said it would postpone capacity enhancement and assembly operations at its second plant in Tapukara, Rajasthan. The new capacity addition, which was initially scheduled for Q4 of 2009, has been deferred in view of the current economic slowdown, resulting in a drop in demand, a senior offical of HSCI said.
The company had announced an initial investment of Rs 1,000 crore at the Rajasthan plant, out of which Rs 600 crore had already been used. HSCI had planned to set up the second plant in Rajasthan with an initial capacity of 60,000 units, while it expanded capacity at it Greater Noida facility to one lakh unit per year. The official said production at the facility in Greater Noida would be reduced in view of the negative growth in the Indian automobile industry and in the interest of maintaining lean operations.
The company, which runs its Indian operations through a joint venture with the Siel Group said it would postpone capacity enhancement and assembly operations at its second plant in Tapukara, Rajasthan. The new capacity addition, which was initially scheduled for Q4 of 2009, has been deferred in view of the current economic slowdown, resulting in a drop in demand, a senior offical of HSCI said.
The company had announced an initial investment of Rs 1,000 crore at the Rajasthan plant, out of which Rs 600 crore had already been used. HSCI had planned to set up the second plant in Rajasthan with an initial capacity of 60,000 units, while it expanded capacity at it Greater Noida facility to one lakh unit per year. The official said production at the facility in Greater Noida would be reduced in view of the negative growth in the Indian automobile industry and in the interest of maintaining lean operations.
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