Honda Siel Cars India is planning to source critical parts of its small car Brio from Japan or China. The company has suspended production of Brio due to floods in Thailand which resulted in shortage of parts. but, according to the sources, it is not looking at suspending bookings for the small car.
Honda Siel says it has finalized alternative sourcing arrangements and should be able to return to normal production by February or March. Honda has also suspended bookings and production of Jazz hatchback. “We have been trying to source from alternative destinations like Japan and China parts that we now import from Thailand,” said Honda Siel senior vice-president Jnaneswar Sen said.
“The arrangement is almost done and the manufacturing and purchasing teams are putting finishing touches to the recovery plan. Right now we are not making Brio and only producing very small numbers of Jazz. We will start the ramp up of production by end-January first with the City,” he said.
The flood situation in Thailand is now under control, the plant there will be out of commission for around six months or so. Alternative sourcing arrangements are therefore critical for Honda.
