Honda Motorcycles and Scooters India is on the mission of revival after facing the crucial labor unrest some three months ago. The company is likely to start a second plant outside Haryana to meet the demand for the products. In a bid to increase the production to fulfill the market needs – more than 15 lakh two wheelers by the next fiscal end.
With a feasibility study on green plant the company has in mind the expansion plans of the Manesar plant. HMSI is another maker after Rico Auto, auto parts maker, who faced the labor problem and both are contemplating on shifting outside Haryana. HMSI is preferably seeking an adjoining segment of North instead of South or West, to have better feasibility on supply base, said its CEO &President.
The labor unrest from July-October incurred the company a loss of Rs300crore by way of less production. The labors intentionally reduced the production demanding more wages and incentives, which fetched the company a decrease of 30% production. The company had got a chunk of orders for 1.6lakh which has to be compensated in three months, by increasing the production to 15 lakh.
The Operating Officer of Honda Asia Oceania said that Honda Siel is setting up a second plant for car at a plant in Rajasthan to add fuel to the first plant at Noida. The company is on the look out for similar second plant for scooters and bikes near Manesar, said the CEO.