Famous Japanese automaker, Honda Motor Company, is going to launch a hatchback Jazz, a new version of its Accord in India in the middle of 2009. In a press meet in New Delhi, Masahiro Takedagawa, President and CEO, Honda Motors India Ltd., told reporters that their products are their weapon and they would launch it at the scheduled time. The trial production of the car has already started. The new Jazz is powered by a 1.2 litre engine and it would share its platform with Honda City.
In order to cope up with the rising cost of raw materials, rupee devaluation in the international market and dwindling sales, Honda is going to further cut down its production and increase price of its cars. Honda Motor has been operating in India since 1995 through a joint venture with the Siel Group. In order to avoid inventory build up, the company is going to further cut its output more than 45%. From the beginning of 2009, Honda has been producing 200 cars in a single shift. For the next six month, it will have one production shift. In addition, the company also postponed the construction of its new manufacturing plant in Tapukara, Rajasthan.
Related articles:
The Economic Times
Central Chronicle
(This entry was first published in February 2009. Because of a technical problem, the entry had to be deleted and I am reposting again now.)
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