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Old 2nd November 2011, 18:37   #1
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Default Thailand Floods affect Honda India's Output. EDIT : Full production resumed

High Points:

- Honda India announced a significant reduction in production at its Greater Noida plant due to parts supply shortage, caused by the floods in Thailand. Honda, which was recovering from the impact of the Tsunami in Japan and was ready to resume full production from this month, is forced to make production adjustments yet again due to disruption of the supply of components from Honda plants in Thailand, as well as its suppliers, based in northern and central Thailand, which has experienced the worst floods in 50 years.

- Honda's production in November will be severely impacted, while December production too will be curtailed.

- The Honda Brio, Jazz and City will be impacted the most. Honda has about 6,000 Brio bookings in hand, along with 4,000 for the Jazz.

Last edited by GTO : 3rd November 2011 at 18:32. Reason: Adding info on booking numbers
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Old 2nd November 2011, 18:40   #2
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Thanks GTO . Any idea on Toyota being affected by th flooding as well ? Maybe the Fortuner will see a slowdown due to this .
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Old 2nd November 2011, 21:50   #3
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Honda has stopped Jazz bookings.
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Old 2nd November 2011, 22:48   #4
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Today we were informed, by Honda that production in the UK will be brought down to 3 days. Looks like the Thailand floods are affecting Honda production everywhere.

We haven't had any communication from Nissan or Toyota. They may not be affected.
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Old 2nd November 2011, 23:17   #5
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

ah, in our gurgaon meet we were just wondering about the same thing! damn. not good at all.
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Old 2nd November 2011, 23:27   #6
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

This is SO not good...! There goes our Jazz delivery. Postponed again even though booked on 1st Sep.

I know that Honda's original Jazz production plan was 600 (Oct), 1260 (Nov) & 960 (Dec). Does anyone have revised figures as on date?

BTW if City production is affected, what is Honda going to sell?!
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Old 3rd November 2011, 00:04   #7
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Honda's October sales stats -

Brio: 1220
Jazz: 463
City: 3376
Civic: 281
Accord: 172
CR-V: 14


Looks like Honda's November/December sales are going to take a huge hit. But they have no other option available to them right now, either.

A message by Honda India on Facebook to all their fans - Thailand Floods Affect Honda India's Production | Facebook

Depressing times for Honda.
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Old 3rd November 2011, 00:48   #8
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Things not looking up for Honda these days; petrol hike, Japan quake and now Thailand.

The rumoured City facelift might just be put off for sometime.

Btw, doesn't City have around 70% + localization; it is only Thailand and Japan that the rest is procured from?

Here's hoping they run full steam soon.
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Old 3rd November 2011, 01:31   #9
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Couldn't have been worse for Honda, could it ? Look at the models affected Brio, Jazz and City. Brio and City was what brought them volumes despite the petrol price hike. When they get out of this situation wonder what further damage rising petrol prices would've done to petrol cars

It'll be unfortunate if they lose out on volumes for Brio due to the floods.
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Old 3rd November 2011, 03:29   #10
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Vehicles at a Honda car factory are submerged in floodwaters in the Rojana industrial district in Ayutthaya province, central Thailand on October 16, 2011.

Thailand Floods affect Honda India's Output. EDIT : Full production resumed-honda.jpg

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Old 3rd November 2011, 06:39   #11
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Quote:
Originally Posted by kraft.wagen View Post
Vehicles at a Honda car factory are submerged in floodwaters in the Rojana industrial district in Ayutthaya province, central Thailand on October 16, 2011.
Oh my dear God! Just looking at those pics given in the link, I can't even imagine the plight of those people suffering there in the rising floods. God save them from their current situation.

Coming back to the Honda's miseries, it seems to me that Honda has had one of its toughest years in 2011 what with the tsunami and earthquake in Japan earlier this year and the flash floods in Thailand now. Just look at those cars submerged in Thai floods, it is a total carnage.
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Old 3rd November 2011, 07:54   #12
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

The company has suspended it's guidance owing to uncertainty over Thai floods. Some Media outlets in Japan are saying that it might take about six months for production to resume to normal levels. I am not sure how accurate this is.
The plant produces about 20K vehicles and 12K CKDs a month. By looking at the snap of submerged cars. It looks like they might take a while to re-start the plant.

However, the company in the call said that the impact on sales of models marketed globally (Jazz/Fit, Civic) could be kept to a minimum as the firm will procure parts from alternative sources. Guess, this might take a couple of months.
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Old 3rd November 2011, 08:31   #13
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Quote:
Originally Posted by kraft.wagen View Post
Vehicles at a Honda car factory are submerged in floodwaters in the Rojana industrial district in Ayutthaya province, central Thailand on October 16, 2011.

Attachment 836382

Source
Oh my God. thats scary.

Honda seem to be having a very tough year 2011.

How will this effect the pricing of HONDA in india, will they be forced to increase price, due to looses in ThaiLand and resultant increase in Cost of Components?
hope not....
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Old 3rd November 2011, 09:19   #14
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Lot of companies are going to get affected including the non-auto industry.
The impact will be seen by Nov end or in Dec only as most cos. maintain good stock of import parts.
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Old 3rd November 2011, 11:40   #15
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Default Re: Thailand Flood situation to drastically affect Honda India's Output in Nov - Dec

Yep Honda has been hit twice globally in recent times - Japan and now Thailand and these are hubs that produce certain components for global requiirements. And in India it has been hit further by the petrol price hike.

The Snaps of complete Car yards submerged makes for a sad scenario.
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