Honda SIEL India To Spend More To Increase Production Capacity


During the past couple of months Honda has seen its sales dipping majorly because of two reasons, the first being their cars too pricy and secondly the unavailability of diesel options. The second problem cannot be addressed immediately as a thorough planning is associated with it but the brand has already announced of bringing diesel engines soon.

For the first problem the company has made some brilliant efforts like cutting the prices of Honda Jazz by 1.5 Lakh and that of Honda City by Rs. 66000, which helped the sales of Honda SIEL grow once again. Lately the company also launched the Honda Brio small car in India which has reinforced the brand’s portfolio and has encouraged it.

Honda Jazz 2011 New Model India (1)

image – Honda Jazz India

Now both the Jazz and Brio are showing tremendous demand and to meet the same the Japanese major is considering investing more money into the Honda SIEL(Noida) plant. Upgrading the facility would help it keep abreast with rising demand during this festive season.

The Noida facility has a capacity of 1,00,00 units which is not enough. Moreover the second plant at Tarakpura, Rajasthan has an annual capacity of 60,000 but is focusing on manufacturing parts for export models only.In fact dealers across the nation are also concerned as they are giving waiting periods of 4-6 months for Jazz and Brio delivery.

The objective of the brand is to sell around 40,000 units of Brio in the next couple of months and is currently selling about 5400 cars(all models included) a month. The company estimates the figures to rise even more and for this very cause an investment needs to be poured in.

We hope the plans go in favor of the maker and it does bring diesel engines soon in India.

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