Will it Really Reduce Waiting Times? Our 3 Questions on Honda City’s Production Shift!

As we reported a few minutes back, Honda has informed us that they have shifted the new City’s production from their Greater Noida plant to the new Tapukara plant in Rajasthan and has promised lesser wait periods. However, this has left us a little clueless on a lot of questions.

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  1. Amaze has been selling about 6000 units on an average for the last 6 months. City’s sales have not fallen below 7,000 units on any of these months. With a monthly capacity of 10,000 units of the new plant, how will Honda manage two of their fastest selling cars from the same plant which have been averaging more than 13,000 units together?
  2. Wouldn’t have it been better if they produced Mobilio along with Amaze from the new plant, which is expected to be a lesser seller than City, for the segment it is playing in.
  3. What will they produce at the Greater Noida plant now – Only Mobilio and Brio as mass market sellers, which have a potential of selling much lesser than 10,000 units which is the capacity of the plant! We do not have the Jazz or any other car coming anytime very soon either!

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Its tough to pass on any critical view of this strategy without knowing the actual plan but it definitely is confusing. For last month, Honda intentionally suppressed Brio’s production which sold only 74 units according to the data shared. We hope, September sales do not read a suppression of either Amaze or City. The plan, it appears will be to produce as many Amazes as possible in August and give in to City’s demand the following month. However, this doesn’t appear to be a policy that the company would follow for a longer time!

At the end of the day, I just hope the waiting times for all the Honda cars, including Mobilio, new City, Amaze and others reduce and all the cars get their share of space!

Related: Honda’s Upcoming Brio-Based Compact SUV Render Pics

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