[speedem0n]

Received this over WhatsApp.

Citing a slowdown in demand and economic fallout from the Corona Virus crisis, HMSI has launched a Voluntary Retirement Scheme for Permanent Workers, JE & Above Associates except Directors.

[volkman10]

HMSI rolls out VRS:

This is part of the voluntary retirement scheme of VRS the fully owned two wheeler subsidiary of Honda Motor company has offered to its associates to exit the company.

The latest to join the bandwagon is Honda Motorcycle and Scooter India, which after its bigger sibling, Honda Car India has come out with a ‘VRS’ to cut its workforce by at least 400 and more in January, this year.

It has initiated a VRS on January 5 to most of its permanent associates (except Directors) and the early bird ones get Rs 5-lakh extra as an incentive to take the non-binding offer.

Link

[neil.jericho]

Honda Motor Co is offering voluntary retirement to some permanent employees at its motorcycles and scooters unit in India amid slowing demand there following the COVID-19 pandemic, the company said on Wednesday.

Honda Motorcycles and Scooters India (HMSI), the country’s second-largest manufacturer of two-wheelers, said it planned to realign its production strategy to improve operational efficiency and ensure long term business sustainability.

HMSI made the scheme available to its employees’ union through a letter dated Jan. 5, which was reviewed and reported by Reuters earlier on Wednesday.

The letter said the scheme was open to permanent employees who have completed 10 years of service or are over 40 as of Jan. 31, 2021. Depending on the number of years of service, a senior manager or vice president could be eligible for a payout of 7.2 million rupees ($98,488), the letter showed.

While it was not immediately clear how many employees would qualify, the letter said the first 400 people to opt for retirement would get an additional 500,000 rupees.

The company continues to see a strong potential to develop India as Honda’s global export hub in the mid-term and its investment plans for future products and technology remain unchanged, it said.

I was quite surprised to come across the above news article regarding the firm number 2 manufacturer in the Indian two wheeler market.

I wonder if it will impact their Big Wing roll out strategy and the launch of other products through their regular sales outlets. If Honda is taking a cautious approach the Indian market for the short term, that may not bode very well for their fans who have been waiting for the launch of several new bikes.

It will be interesting to see if other companies follow suit and look to trim costs.

[aargee]

Originally Posted by neil.jericho

I wonder if it will impact their Big Wing roll out strategy and the launch of other products through their regular sales outlets

To my knowledge, there will be seldom impact; corporate would promote younger folks or people who're aspiring to climb corporate ladder who cost less. It can also pave way to hire more temporary workers who can compensate the same work for lesser benefits.

[sukiwa]

HMSI roles out VRS.

My first reaction was 'when will HMSI role out retirement for Activa?'

[libranof1987]

Originally Posted by sukiwa

My first reaction was 'when will HMSI role out retirement for Activa?'

Retire the Activa? That damn thing accounts for almost 50% of Honda sales! The Activa ain't going anywhere; instead, by the time we retire, it'll probably retail at a couple of lakhs. For the standard version that is.

[Gansan]

What slowing trend? A quick check of two wheeler sales figures from September to November shows increased sales as compared to same months last year. If anything, more people are buying two wheelers to avoid public transport due to the pandemic.

Perhaps they will use the opportunity to reduce older permanent workers and hire younger contract workers at lesser cost.

[sukiwa]

Originally Posted by libranof1987

Retire the Activa?

Missed the sarcasm in spite of being from Pune, very surprising.

Although HMSI has been milking Activa for many years, they aren't any different than their former partner Hero motocorp. Being a leader (from sales/volume perspective), HMSI should show technical improvements and innovation in their products. That will make us smile at HMSI again.

Sorry for going off-track a bit and rant.