The devastating March quake and tsunami in Japan are seriously impacting the Indian auto industry. Just days after Toyota India announced a 70% drop in production due to supply constraints from Japan, fellow Japanese maker Honda has said it will cut production by 50% on shortage of supplies from Japan. The company will reduce the capacity at its Greater Noida plant, where it produces models like the Honda City sedan and Jazz hatchback.Honda said the situation of parts supply in Japan remains fluid as production of component parts and vehicles at Honda plants is at approximately 50% of the original production plan. It said that most of the Japan-based suppliers were making progress to restart production, and many either have or are ready to resume parts production. Toyota said last week that supply constraints from Japan had forced it to reduce production by up to 70% between April 25 and June. The move will lead to a production loss of about 7,000 units a month, Toyota said, translating into a revenue deficit of Rs 490 crore for its Indian entity-Toyota Kirloskar Motor.
No comments:
Post a Comment