Honda Two-Wheelers To Defer Use Of Additional Assembly Line At Scooter Plant In Gujarat – carandbike

Honda Two-Wheelers To Defer Use Of Additional Assembly Line At Scooter Plant In Gujarat – carandbike

In response to a media report, Honda Bikes and Scooter India (HMSI) has deferred commissioning of a 3rd meeting line on account of slowdown in demand.

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Honda decides to defer commissioning of extra meeting line at scooter plant

Honda Bike and Scooter India (HMSI) has reportedly delay commissioning a 3rd meeting line on the firm’s Vithalpur plant in Gujarat as a result of market stoop introduced on by the COVID-19 pandemic. In response to a report in ET Auto, HMSI’s Director of Gross sales and Advertising, Yadvinder Singh Guleria is quoted as saying that Honda’s current capability is sufficient to meet market necessities within the close to time period. In response to Guleria, whereas demand in June was higher than anticipated, it’s troublesome to determine when normalcy will return to the market.

Additionally Learn: Honda Begins On-line Bookings For Two-Wheelers


“Whereas we now have fared higher in June, with retail gross sales near 75 per cent of pre-COVID ranges, to attract gross sales estimates based mostly on these numbers is troublesome. There are cities that are getting out and in of lockdown,” Guleria is quoted as having mentioned.


The Vithalpur manufacturing plant in Gujarat is a scooter-only facility

carandbike reached out to HMSI to substantiate the information of the third meeting line commissioning on the Vithalpur plant being deferred, however thus far, there’s been no concrete response. Honda had invested ₹ 630 crore to broaden capability by 6 lakh items at its Gujarat plant, a scooter-only manufacturing facility. Whereas building of the extra meeting line on the plant is full, Honda will resolve on commissioning the unit based mostly on market demand. The plant already has a capability of manufacturing 12 lakh items.

Additionally Learn: Honda Two-Wheelers Sees 55 Per Cent Y-O-Y Decline In Gross sales

Gross sales of two-wheelers throughout producers has been a washout within the first quarter, and total home two-wheeler gross sales are anticipated to say no in double digits within the present monetary yr. The excellent news is that an inside survey by HMSI over the past two months has indicated a gradual restoration in demand. HMSI has whole put in capability of 64 lakh throughout its 4 manufacturing services in Haryana, Rajasthan, Karnataka and Gujarat. Guleria nevertheless cautioned that with the primary quarter gross sales a close to whole washout, will probably be extraordinarily troublesome to get well gross sales within the remaining 9 months for all the yr.

In June 2020, Honda despatched almost 2 lakh 11 thousand two-wheelers, a three-fold hike over the corporate’s gross sales in Could 2020. Nonetheless, year-on-year, Honda witnessed a 55 per cent decline in gross sales, down from 4,76,364 items bought in June 2019. Honda nevertheless goes forward with new two-wheeler launches as deliberate for the monetary yr.

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(Supply: ET Auto)

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