Honda arm could take nearly two-three years to start production on the third line of its Gujarat plant, as demand has shrunk in the wake of covid-19 pandemic.
Honda Motorcycle & Scooter India Pvt Ltd (HMSI) had gone ahead with the construction of a third line to add 6 lakh units per annum at the Gujarat plant, having a total capacity of 12 lakh units per annum. Director - Sales & Marketing - Yadvinder Singh Guleria told PTI, " As for our new line which we had made in our fourth factory in Gujarat, we call it our third line. The construction activity and other activities went on as per schedule. However, we have put on hold the decision on when to start production at that line because the overall market has shrunk."
Meanwhile,HMSI has last week initiated a VRS scheme for permanent workers as a part of Honda's overall production realignment strategy across all four factories to improve its efficiency.