Honda Siel Motors expects to return to its peak capacity of 9,000-10,000 units per month by March after production was affected by the Thailand floods which caused parts shortages.
The Economic Times said the company is now sourcing parts, mainly underbody and electronic components, from China and Japan.
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Honda Siel’s sales and marketing chief, Jnaneswar Sen, said: “Now that we have secured alternative sources of supplies, we hope to deliver as many cars as possible to our waiting City, Jazz and Brio customers.”
Sen said that the company also plans to add another production line at its second plant in Rajasthan, once peak production resumes, adding that it plans to increase localisation to avoid global currency risks and supply fluctuations.
“We hope to completely utilise our plant capacity this year. For us, the entire effort will be on giving a rebirth to Brio, which we are confident will drive the volumes,” he said. The plant’s capacity is 100,000 units.
Sales fell 3.8% to 59,463 units in 2010-11, compared to 61,815 units in the previous fiscal year. The company had expected the Brio to boost sales in the current fiscal year; however the company operated at less than half capacity for almost six months due to parts shortages.
