The Indian unit of Japanese auto giant Honda has been forced to cut down the production of its flagship sedan –Honda City – due to constrained supply of essential components from flood affected Thai market. While the production of the models like Honda City has been shut down temporarily, the output of Honda Jazz model is reduced considerably. However, to overcome this acute component shortage, Honda is in the process of sourcing components from its facilities in China and Japan, till the situation at its flood affected Thai plant gets back to normal.
While confirming the reports of cut down in output, Jnaneswar Sen, senior Vice President at Honda Siel Cars Indian said, "We are looking at China and Japan very keenly. We hope to firm up things soon and return to normalcy in the coming months, though nothing can be confirmed as of now." According to him, the outputs are going to be affected badly in the month of December 2011, and the company is making all necessary arrangements to normalize the supply of critical components.
As per the industry sources, after stopping the production of Honda City, now the company will be shutting down the production of recently launched compact hatchback Brio from next month. So far, the company has managed to deliver only 1500 units of its Brio hatchback as against bookings of over 6,000 units. This means, the company will only be producing limited number of hatchback Jazz, premium sedan Civic and Accord.
