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December 27, 2020

Honda to Close Another Assembly Plant

As part of their continued steps to improve their business efficiency, Honda Cars has announced that they are closing yet another assembly plant.

After closing its assembly in the Philippines, China, the U.K., among others, the Japanese carmaker has announced that it will stop production at one of plants in India, specifically, the Greater Noida plant. This plant has an annual capacity of 100,000 vehicles and produces vehicles such as the City, Civic, and CR-V for the Indian market.

However, as sales continue to get hammered due to the on-going pandemic, Honda is trimming their output of four-wheeled vehicles by 40 percent there. With that, they will consolidate their manufacturing operations in India at their Tapukara plant in Rajasthan with “immediate effect.”

Moving the City’s production to their Tapukara plant, Honda will assemble it alongside the Amaze, Jazz, and WR-V models. 

Honda though has confirmed that it’s the end of the road for the Civic and CR-V for the Indian market.

Under previous CEO Takanobu Ito, Honda had an ambitious goal of selling an annual 6 million cars globally, with manufacturing plants built or expanded around the world. However, the expansion took a toll on Honda’s earnings. Current CEO Takahiro Hachigo opted instead for optimized operations around the world.

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