Honda resumes production in Thailand

Honda Siel Cars India (HSCI) has resumed supply of parts, including critical engine components of the Brio hatchback to its plant in Thailand, which had suspended operations following devastating floods in the country late 2011

Meanwhile, Honda Automobile Thailand Co. Ltd. (HATC), a subsidiary of Honda Motor Corporation, Japan, has also resumed partial operations at its plant in Ayutthaya. Since completion of drainage work from the facility in November 2011, the company had been exerting efforts to clean, inspect, repair and replace the damaged plant facilities and manufacturing equipment and is now finally ready for production.

The floods had also taken a toll on the company’s sales figures in India since some of the parts for the Brio, Jazz and City, which were being sourced from Thailand, were severely affected.

Honda is among the last Japanese companies to restart production in Thailand. However, it will take a while for operations to normalise and full production will come about only by April 2012. Nissan and Toyota, the other two Jap carmakers, had resumed production by the end of 2011 itself.

Honda had earlier said that the flood disruptions would lead to a shortfall of 2.60 lakh vehicles globally. Despite that, the company registered a growth of 83 percent in February 2012.

Prices of Honda cars, namely the Jazz, City and Brio have gone up by an average of Rs. 10,000 post the excise duty hike announced during Budget 2012. The Civic has now become dearer by Rs 36,600 to Rs 45,800 and it now costs Rs 12.59 lakh to Rs 14.88 lakh, ex-showroom Delhi. And the flagship model of the Accord has now increased to Rs. 67,500 for the base version and Rs 93,975 for the top-end version.