Honda Cars India Ltd had stopped the production of the new iteration of their highly successful mid-size sedan City last month after selling 53,605 units since its launch in January this year. The company decided to shift the production from its Greater Noida plant to their new plant at Tapukara in Rajasthan.
In its official monthly sales release, Honda has confirmed that they will begin production of the City at Tapukara in the 1st week of September ie within any of these days. Last months sales tally of only 700 odd units for new City confirms that there was almost no production of the car. This has led to increase in waiting period of City by about a month.
However, we had raised three very simple questions last month just as the company officially shared this news of production shift. If the Amaze, which is clocking some good numbers (over 9000 units in August), and with Tapukara plant’s total monthly capacity of 10,000 units, how can it manufacture both the high-selling cars (City and Amaze)? Add to that the fact that the festive season is only going to further increase this demand!
So is Honda planning to increase the capacity of the Tapukara plant (which is running on a single shift right now) or will it keep shuffling between the Amaze and the City , sacrificing either one at the expense of the other? So shall we expect very less number of units for Amaze for this month? Or the company expects the new Ciaz to eat into City’s share (and Zest into Amaze’s) so that they can live in harmony!
Honda claims that moving City’s production to Tapukara will help in reducing the waiting period. But how? Seems rather difficult until and unless Honda springs up with some magical solution! Are they going to shift some of the load of Amaze to the Greater Noida plant? The Greater Noida plant also has a capacity of 10,000 units per month and is the birthplace of both the Brio and the newly launched MPV Mobilio, both of which combined have never reached the total capacity of, again, 10,000 monthly units.
Well, the Jazz might not be coming this year, but what will they do when it comes? Will Honda be sacrificing on one model’s production so that another model can leach on it? Only time will tell. Meanwhile, all those of you waiting for your City, resuming of production may just be some good news…