Honda to relocate factory from India to Indonesia, says minister: Automaker denies

Honda Cars India Ltd (HCIL) is currently operating the only one plant in India after shutting down the Greater Noida assembly line. Now, Indonesia’s Minister of Industry – Agus Gumiwang has said that Honda will re-locate its Indian manufacturing operations to Indonesia.

Honda to relocate factory from India to Indonesia, says minister: Automaker denies

The minister announced the same after officials from Honda met the officials of the Indonesian government during a visit to Japan in March. Gumiwang said the statement in a virtual press conference. As quoted by CNN Indonesia, Gumiwang said, “Production facilities in India will be moved to Indonesia and Honda is also committed to building a new model based on electricity”.

Honda has denied and dismissed

HCIL has denied any such claim. The parent company of HCIL – Honda Motor Company is not planning to move its Indian production plant to Indonesia as per the official statement by Honda India.

Honda has replied to the news reports and said,

“As per a news report by CNN Indonesia dated March 12, 2021, which was also carried by a few other media in Asia region, it was reported that Honda is set to relocate its production facility from India to Indonesia which is not true. We would like to clarify that Honda has no such plans to relocate any production facility from India to Indonesia. To put things in correct perspective, we are exporting certain used machines from our Tapukara plant to Indonesia for their localization enhancement initiatives”,

In December 2020, HCIL announced that it will shut down the Greater Noida, Uttar Pradesh plant and shifted all the operations to the Tapukara, Rajasthan. Under the restructuring process, Honda India also discontinued two slow-selling models in the Indian market – the Civic and the CR-V. Both these models were manufactured in the Greater Noida plant. All the other cars like the Honda Amaze, Honda City, Honda WR-V and the Jazz are manufactured in the Tapukara plant, which is a more advanced plant.

Honda India has not moved out of the Greater Noida plant though. It announced that they will remain active and do preventive maintenance of the plant. This will ensure that if at any point, HCIL needs to restart the production at the Greater Noida plant, they will be able to do it without too much work.

Honda is likely to launch new products in the Indian market to take on the competitors. We may get to see the launch of the all-new HR-V in the Indian market, which will take on the likes of Hyundai Creta, Kia Seltos and also the likes of Tata Harrier.

The brand is also planning to launch the highly fuel-efficient Honda City hybrid that will take on the likes of Ciaz. Other than that, Honda is missing from the sub-4m compact SUV segment that is currently one of the most popular segments in India. The all-new sub-4m compact SUV is likely to be launched sometime in 2022.