Deliveries of some Honda models to India are likely to be delayed as the recent earthquake and tsunami have halted production in many factories in Japan. Honda’s R and D headquarters in Tochigi were directly in the line of fire and now there’s news that some part supplies in the area could be affected as well.
While this is not likely to be an immediate problem for Honda in India, who currently are said to have a healthy amount of stock, sources in the company foresee a temporary reduction in production arising sometime in May.
Many plants in Japan are still not back up to full strength, and this is likely to have a cascading effect on the supply of cars to India. Honda’s Sayama plant for example will only commence full scale production by April the 11th and there are still many smaller Tier 1 and Tier 2 component suppliers who have yet to get their act together.
Whereas many Hondas sold in India are produced primarily in Thailand, a considerable number of parts that go into these cars come from Japan. Honda hasn’t issued any clarification on which models are likely to be affected, but we assume models like the Civic, Accord and CR-V are likely to be the hardest hit. Watch this space for updates.
Honda is also assessing how conditions in Japan may affect plans for their new small car, the Brio. Production of Honda’s baby may have already started at its Thailand plant, but there may be a slowdown or temporary stoppage of vital supplies from Japan. And this could mean a delay in the launch of the car in India.