In keeping with a media report, Honda Bikes and Scooter India (HMSI) has deferred commissioning of a 3rd meeting line as a consequence of slowdown in demand.
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Honda decides to defer commissioning of further meeting line at scooter plant
Honda Bike and Scooter India (HMSI) has reportedly delay commissioning a 3rd meeting line on the firm’s Vithalpur plant in Gujarat because of the market stoop introduced on by the COVID-19 pandemic. In keeping with a report in ET Auto, HMSI’s Director of Gross sales and Advertising and marketing, Yadvinder Singh Guleria is quoted as saying that Honda’s present capability is sufficient to meet market necessities within the close to time period. In keeping with Guleria, whereas demand in June was higher than anticipated, it’s tough to determine when normalcy will return to the market.
Additionally Learn: Honda Begins Online Bookings For Two-Wheelers
“Whereas now we have fared higher in June, with retail gross sales near 75 per cent of pre-COVID ranges, to attract gross sales estimates primarily based on these numbers is tough. There are cities that are getting out and in of lockdown,” Guleria is quoted as having mentioned.
The Vithalpur manufacturing plant in Gujarat is a scooter-only facility
carandbike reached out to HMSI to verify the information of the third meeting line commissioning on the Vithalpur plant being deferred, however to this point, there’s been no concrete response. Honda had invested ₹ 630 crore to develop capability by 6 lakh models at its Gujarat plant, a scooter-only manufacturing facility. Whereas development of the extra meeting line on the plant is full, Honda will resolve on commissioning the unit primarily based on market demand. The plant already has a capability of manufacturing 12 lakh models.
Additionally Learn: Honda Two-Wheelers Sees 55 Per Cent Y-O-Y Decline In Sales
Gross sales of two-wheelers throughout producers has been a washout within the first quarter, and total home two-wheeler gross sales are anticipated to say no in double digits within the present monetary yr. The excellent news is that an inner survey by HMSI over the past two months has indicated a gradual restoration in demand. HMSI has complete put in capability of 64 lakh throughout its 4 manufacturing services in Haryana, Rajasthan, Karnataka and Gujarat. Guleria nonetheless cautioned that with the primary quarter gross sales a close to complete washout, it will likely be extraordinarily tough to recuperate gross sales within the remaining 9 months for the whole yr.
In June 2020, Honda despatched almost 2 lakh 11 thousand two-wheelers, a three-fold hike over the corporate’s gross sales in Might 2020. Nevertheless, year-on-year, Honda witnessed a 55 per cent decline in gross sales, down from four,76,364 models bought in June 2019. Honda nonetheless goes forward with new two-wheeler launches as deliberate for the monetary yr.
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(Supply: ET Auto)
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