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Old 26th April 2011, 10:40   #16
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Default Re: Honda India to cut production by 50%

That is real bad news for Honda. Jazz was a flop, City's reign was ended by Vento and then the Tsunami. Everyone was looking forward to Brio. Now, I don't know how things are going to work out.

But, I have a firm belief in the ability of the Japanese to bounce back from adversities. This time also, it is not likely to be different. All the best to them.
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Old 26th April 2011, 17:06   #17
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Default Re: Honda India to cut production by 50%

Get a feeling that the Japan issue is being stated to have an excuse for why they have had to reduce production.

Demand for Honda cars itself has been low in recent times and they are not saying that they are stopping bookings for any cars (which would have been the case if they were stretched beyond what they could deliver.)

What has happened in Japan is Sad, but somehow this latest release seems to a strategic PR exercise to give excuses for the sales in months to come.

Ofcourse this can acually result in an artificial demand being created by customers who wish to procure Honda vehicles and feel waiting is risky.
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Old 26th April 2011, 18:58   #18
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Default Re: Honda India to cut production by 50%

Its been a while since the earthquake...is that indicating how much parts inventory Honda is holding? Not exactly JIT
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Old 26th April 2011, 19:21   #19
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Default Re: Honda India to cut production by 50%

Quote:
Originally Posted by ACM View Post
Get a feeling that the Japan issue is being stated to have an excuse for why they have had to reduce production.

Demand for Honda cars itself has been low in recent times and they are not saying that they are stopping bookings for any cars (which would have been the case if they were stretched beyond what they could deliver.)

What has happened in Japan is Sad, but somehow this latest release seems to a strategic PR exercise to give excuses for the sales in months to come.

Ofcourse this can acually result in an artificial demand being created by customers who wish to procure Honda vehicles and feel waiting is risky.
Who buys cars based on their sales numbers? So, how could this be a PR exercise? Also, I dont think they are targeting the share holders with the announcement which can be the only reason why one would do so.
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Old 26th April 2011, 20:52   #20
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Default Re: Honda India to cut production by 50%

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Originally Posted by Mpower View Post
Its been a while since the earthquake...is that indicating how much parts inventory Honda is holding? Not exactly JIT
Very good point MPower.. Please find below the reason for why its this way.

1. JIT as a philosophy is not applied to all the parts of the car, for e.g. things like bumper, seats, steering etc will be using JIT but heavy ones like Engine, transmission which are invariably imported are not JIT parts.
2. JIT is only applied for localised parts not for imported which are imported once in a month. You see importing a container for engine for a month is cheaper than importing 20 of them daily. But these will be placed in stockyard and are supplied to the production line using JIT process (this reducing the space occupied in the production line)
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Old 27th May 2011, 19:02   #21
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Default Re: Honda India to cut production by 50%

*Update* from Honda

- HSCI likely to resume normal production from the festival season.

- HSCI is currently operating on 50% of its planned production volume in the wake of the shortage of components from Japan. Meanwhile Honda Brio will be launched during the festival season this year.

- The parts supply is now expected to increase gradually, and production volume will be increased starting August 2011 with the expectation that HSCI will begin operating on normal production from the festival season.
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Old 27th May 2011, 19:53   #22
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Default Re: Honda India to cut production by 50%

Festival season is still 2-3 months away if we consider Shri Ganesh festival as commencement of festival season.

So that means it will take another 3-5 months for Honda to be back on right track with Brio launch. I don’t know why they are taking so much time to resume normal production when their Japanese counterpart Toyota has already started production at their full capacity.

Brio launch is already delayed and now still it is at least 2-3 months away. Come on Honda, start revving hard.

Last edited by bluevolt : 27th May 2011 at 19:55.
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