Last week we had reported that Honda has halted production of the City sedan to accommodate the recently launched Mobilio MPV (link to news article). Today Honda has announced that it is moving the production of the City from its Greater Noida plant to its Tapukara manufacturing facility in Alwar district of Rajasthan.
The company has also declared that there will be no production of the City in the month of August. Production of the car will resume in the first week of September 2014.
The Tapukara plant has an installed capacity of 1,20,000 units and is currently running on a single shift. Honda rolls out the Amaze from this plant.
While the Mobilio is a new and important product for Honda, it cannot afford to neglect the demand for its best-selling sedan, the City. 53,605 units of the City have been sold in the January - July 2014 period, which has established it as the leader of its segment with a market share of more than 50%.