Honda, Hyundai and Toyota boosts production
Things get changed to the timely necessity and the automobile industry is no exception to this. Three major companies of elite reputation – Honda, Hyundai and Toyota are in reviving spirits in view of the festival season. It is quite wondering to know that these companies had earlier decided to put off their production stint as a result of economic downfall. Consequently, Honda Siel will increase its production with two shifts to release Jazz and other models. The company, which boasts of 70% total sales volume from Honda City, is in the constraint case of time with three weeks.
The year 2008-09 was not a happy one to Honda as it witnessed a downfall of 5000 units from the previous year’s 60000 units. The same is the case with Hyundai as its production of i20 will see the increase in volume of 1500 units from the current 1000 units. However, the production in Plant 1 is in condition to deliver i10 and Verna models working in three shifts @1500 units a day. Toyota Kirloskar too has its own production ramp with the current 3000 units a month and the plans are on for the increase in the production of Innova, Corolla which have got three weeks of wait.
The company has chalked out to raise the production from 5000 units to 5500 units from September. This ramp mode has invited warnings from market analysts that the increased production would yield less benefit on the assumption that post-festival sale would incur heavy discounts to sell off the units. Other reasons cited for the speculation are the government’s finance policy and seasonal rains.