Honda halts production of City, Brio may follow suit

Though one cannot control a natural calamity, the Thailand floods seems to have a worst timing ever. With Honda City facelift launch just around the corner, and the increasing demand for outgoing Honda City and Jazz models, the auto major is facing a major component supply crisis. The company has reportedly cutdown the production by 95% foreseeing the worse condition to follow in the month of December. Honda Jazz, Honda Accord and Honda Civic are the two cars to keep the show going with the nominal production output for few hundreds, while the Honda City production is brought to an abrupt halt, if the situation is not curbed, production of Honda's new hatchback Brio could be stopped too.

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Honda India being ambidextrous is able to handle the situation quite sedately taking help from the China and Japan to fill in for the gaps. The 6000 unit production capacity of the Honda Siel Cars India Ltd is down to a couple of hundreds. Unfortunately the condition arises at the time when the dealers have introduced outrageous discounts on the Honda City and Honda Jazz models which are aggressively fighting hard to grab the market share from the diesel cars.  The lucrative discounts on the two cars seem to jump the sales which are curbed by the floods in Thailand. The situation is however likely to get under control by January for Honda City, expecting a further delay in case of Honda Brio and Honda Jazz hatchbacks.

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