Honda is to put off boosting output capacities in Turkey and India in light of weak sales worldwide.
A Kyodo report said that the worsening business climate may force Honda to delay its planned production increase at its plant in the U.S. state of Indiana as well.
Honda’s decision to postpone the output capacity increase in India and Turkey stems from slackening demand in Russia and other emerging economies, Honda officials said.
Earlier, the Turkish plant, which makes cars such as the Civic compact for sale in Russia, was supposed to boost its annual output capacity by mid-2009 to 63,000 vehicles, up from the current 50,000 units. Honda will also rethink its plan to hire 500 additional workers there.
The schedule for Honda’s second plant in India, which has been slated to begin operations in 2010, is also expected to be delayed, according to the officials.