Honda stops production at Greater Noida facility

New Delhi: Honda Cars India Ltd (HCIL) has decided to pull the plug on production at its Greater Noida plant in Uttar Pradesh, sources said on Saturday.

The automaker, which is a wholly-owned subsidiary of Japanese Honda Motor Co, had set up the Greater Noida plant in 1997.
Industry sources said the plant would, however, continue to house the company’s corporate head office, spare parts division and research and development (R&D) centre among other functions.

Meanwhile, the company declined to comment on the matter.

The automaker would now rely only on its Tapukara facility in Rajasthan to roll out its entire product range in the country, sources added.

HCIL had earlier this year initiated a voluntary retirement scheme (VRS) for its manufacturing line associates at the plant to increase productivity and efficiency.

The company used to roll out models like City, CR-V and Civic from the Greater Noida plant, which had a production capacity of one lakh units per annum.

The Tapukara facility, on the other hand, has an installed capacity of 1.8 lakh units per annum.

The plant also produces engines which are exported to other countries.

HCIL had reported sales of 9,990 units in the domestic market in November, up 55 per cent from 6,459 units in November 2019.