Honda Brio production still carries the 'halt' status

Honda Motors has finally given in to it woes. The floods in Thailand have cast a nasty spell on the auto major causing them to halt the production of their most economic hatchback till date.  2012 Honda City is slightly behind the schedule; however the auto major has come up with the date December 14th for its possible launch. New Honda Civic and 2012 Honda CR-V launch plans are likely to take place as scheduled as there is enough space for the auto major to get back on track. Pausing the production of the Honda Brio will hit the auto major quite badly.

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Honda Brio hatchback is one the cars from the auto major that has the capability to see some overwhelming sales. Around 5000 units were booked including the pre-bookings, within a matter of days from the launch.  On the other hand, Honda India announced massive cash discounts on Honda Jazz and Honda City which started selling like hotcakes after discounts. Soon the situation reached to an extent when the stock was clearing out at a pace where the production fell behind the demand. All the Japanese car manufacturers which have their manufacturing units set up in Thailand are facing the issue. More than many, Honda seems to be the most affected in the lot. Tsunami first and now the floods have pushed the auto major further into the gallows never giving them a chance to recover.

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The Thailand unit of Honda Motors is one of the key manufacturing units to source the under body parts and electronic components for Honda cars across the globe. India is one country which heavily depends on Thailand unit to roll out its cars. Increased amount of localization and imports from other markets like China and Japan is setting the ball in motion for Honda India. However, the auto major has delivered good news recently. The Honda car line-up in India is completely devoid of the diesel powertrains, a gap the consumers always found.  Now, Honda Motors is quite involved in developing a 1.6 L diesel powertrain for its car models. Though unsure about the entire line-up at the moment, the diesel motor is expected to make it to the Honda Civic followed by Honda City as well.

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