Honda Shuts Greater Noida Plant, Discontinues Honda CR-V and Honda Civic in India

Honda Shuts Greater Noida Plant Discontinues CR-V Civic in India

On Wednesday, Honda India announced that they are reorganising operations in the Indian market for its efficiency and sustainability as its products are also reduced to 4 models. Rajesh Goel, who is the senior VP and director of Honda Cars India Ltd. said that they are realigning all the production to Tapukara plant and will shut all the production at the Greater Noida Plant.

Honda Cars India Ltd., has also stopped the production of Honda Civic and Honda CR-V as they have decided to discontinue the sale of both the cars with immediate effect in India. Honda will further go down now, as it was already operating only in 70% of market segment. So, from now on Honda will have only 4 models in India Honda City, Honda WR-V, Honda Amaze and Honda Jazz.

As per the company’s current development Honda Civic and Honda CR-V has been chosen to be suspended from India due to the increase of the cost of production. Gaku Nakanishi, president and CEO, Honda Cars India said that If we wanted to continue these two models, we need to make a new investment which will raise the cost of production and the company is not ready for this.

Mr. Nakanishi further added that the present market condition is very unpredictable for Indian automobiles. Due to the pandemic, every carmaker is facing very difficult time. India has witnessed historic lows in the sales of automobiles. Honda’s market share has dropped down to 3.7% in 2020 from 5.5% in 2019. There is no capacity for expansion in the near future but every brand will invest in new product development and platform improvisation. From now onwards, Honda cars India will only be produced at Tapukara plant, which is located at Rajasthan.

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