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Honda shifts production from Greater Noida to Tapukara

The company's head office will continue to operate from Greater Noida.

Honda has stopped production at its Greater Noida plant as it is realigning its manufacturing operations. Production of vehicles and components has been shifted to the Tapukara plant in Rajasthan. The plant will serve both domestic and export markets.

The company's Head Office, India R&D Centre and Spare Parts operations (including warehouse) for Automobile, Two Wheeler and Power Product businesses will continue to operate from Greater Noida.

Honda's Tapukara plant is spread over 450 acres and has an installed production capacity of 1,80,000 units per annum. The facility houses a forging unit, press shop, powertrain shop, weld shop, paint shop, plastic moulding, engine assembly, frame assembly and engine testing facility.

 

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Rumour: Honda stops production at Greater Noida plant

Honda is said to have stopped production at the Greater Noida plant after over 2 decades.

Last year, it was reported that Honda was planning to shut down one of its manufacturing units in India as part of a restructuring plan. It has now been reported that the carmaker has stopped production at its Greater Noida plant and is shifting the entire production line to the Tapukara plant.

The production lines at Honda's Greater Noida plant have gone silent after more than two decades. Until last month, the plant produced the City, CR-V and Civic. It is said that not a single unit was assembled at the Greater Noida facility in December. The facility will continue to house the corporate office and R&D department.

Honda has reportedly announced a voluntary retirement scheme (VRS) for its permanent employees handling manufacturing at the Greater Noida plant, effective from January 28, 2020. This also hints at the company's plans to shut down production. However, Honda hasn't officially confirmed these reports.

The Greater Noida plant had an annual production capacity of 30,000 units which was later increased to 1,00,000 units. The Tapukara plant in Rajasthan has a capacity of 1,80,000 units.

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Rumour: Ola plans to build electric scooters in India

Ola to build world's largest e-scooter manufacturing plant in India?

According to a media report, ride-hailing company Ola plans to get into manufacturing of electric 2-wheelers in India.

The cab aggregator is said to be in talks with four state governments for 100 acres of land to set up what is being termed as the world's largest e-scooter factory. The plant will have a production capacity of 2 million units. However, there has been no official confirmation regarding these reports yet.

At present, the world's largest scooter manufacturing unit is the Honda factory in Gujarat. It produces 1.2 million vehicles each year.

Earlier this year, Ola acquired Dutch electric scooter brand Etergo. The company's AppScooter has a claimed range of 241 km on a single charge.

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Royal Enfield sets up its first overseas factory in Argentina

This is the bike maker's first assembly unit outside India.

Royal Enfield has set up an assembly unit in Argentina. It's the brand's first factory outside India.

Royal Enfield has partnered with Grupo Simpa, the brand's local distributor to set up this unit. It is located at Campana in Buenos Aires.

Initially, three models will be assembled at this factory using completely knocked down kits (CKD). These include the Himalayan, Interceptor 650 and Continental GT 650.

Royal Enfield has been selling its range of products in Argentina since March 2018. It has five exclusive stores in the country. Royal Enfield also has a total of 31 exclusive stores and 40 retail touchpoints in Latin American countries. The brand has its presence in 60 countries across the globe.

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Rumour: Maruti to shift Gurgaon plant to new site in Haryana

Maruti Suzuki has decided to shift its manufacturing unit from Gurgaon to a new location in the state of Haryana.

Maruti Suzuki has been offered land parcels in Manesar, Sohna and Kharkhoda in Sonipat. The company is evaluating its options but has no plans to move the factory out of Haryana.

Maruti's Gurgaon plant is located on the Old Delhi-Gurgaon road. The 39-year old facility is spread over 300 acres and has an annual capacity of around 7 lakh units. The area is now getting crowded with too many residential buildings being built in the vicinity. The movement of heavy vehicles is also causing congestion in the city. Therefore, the carmaker is seeking a new site in the range of 700-1,000 acres.

Out of the three land parcels offered by the state government, the 1,300 acre plot at Sohna was found to be unsuitable due to high water levels at the site. While Kharkhoda has enough land available, the 600 acre Manesar plot would be ideal as it is located in one of the largest automobile hubs in India with numerous ancillaries already present. Maruti already has a plant in Manesar since 2007.

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Studds sets up Asia's biggest helmet factory in Haryana

Studds Accessories Ltd. has set up what is claimed to be Asia's biggest helmet manufacturing facility at Faridabad, Haryana.

The company has invested Rs. 160 crore in the new factory which is spread over 5.5 acres. Helmets from the Shifter and Thunder series will be manufactured here. The factory will also produce bicycle helmets for the domestic market.

A second manufacturing unit, spread across 1.5 acres has also begun operations. This facility was set up with an investment of Rs. 40 crore. It has an in-house Expanded Polystyrene (EPS) production line. EPS is a crushable foam used in a helmet. It is said to be the most important safety component in a helmet.

Both factories are highly automated and have moulding, visor coating, paint shops, packaging and warehousing units. They have a combined annual production capacity of 7.5 million units of motorcycle helmets and 1.5 million units of bicycle helmets. These facilities will generate employment for more than 1,500 people.

With the inauguration of the new factories, Studds has doubled its production capacity from 7 million units to 14 million units. The company currently exports helmets to more than 40 countries.

 

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Maruti Suzuki to resume production at Gurgaon plant

According to a media report, Maruti Suzuki will be resuming operations at its Gurgaon plant from May 18, 2020.

The Maruti Suzuki factory has been idle for the last 55 days since the countrywide lockdown to contain the Covid-19 outbreak began. Production will restart as the lockdown measures are being eased to promote economic activities.

Maruti builds the S-Cross, Vitara Brezza, Ignis and Super Carry LCV at its Gurgaon facility. The carmaker has already reopened its Manesar plant where modes like the Alto, Swift, Dzire, S-Presso, Ertiga and Baleno are produced. Meanwhile, the Gujarat facility is still under lockdown as it is in a containment zone.

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Rumour: Kia planning to setup second plant in India

According to a media report, Kia is planning to set up a second manufacturing plant in India.

At present, Kia's only manufacturing unit in India is located at Anantapur in Andhra Pradesh. This facility has an annual production capacity of 3,00,000 units. The report states that Kia expects to reach full capacity by 2022. Kia is also rumoured to launch an MPV to rival the Ertiga in the Indian market. The carmaker could start facing capacity issues once the Sonet compact SUV and the MPV are launched. It is believed that the Sonet will be made only in India and could be exported to other countries

It has been reported that Kia has started scouting for a new site for its second plant. It is also believed that the company might be looking at sites outside Andhra Pradesh.

Kia currently has two products on sale in India. The Seltos SUV was the first model to be introduced, which was followed by the Carnival MPV. The upcoming Sonet is expected to compete with the Hyundai Venue, Tata Nexon, Ford EcoSport, Maruti Vitara Brezza and the Mahindra XUV300.

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Covid-19: Chinese auto industry coming back on track

According to a media report, Chinese carmakers have started resuming production at their factories. Some have even reopened their dealerships. The news comes amidst announcements of shut downs in most of the auto manufacturing countries including the ones in North America, Europe, Latin America and Asia.

It has been reported that Honda, Nissan, and Toyota, have resumed operations in China. Toyota is said to have 98% of its dealerships functional as well. Volkswagen has also resumed production at most of its plants in the country, albeit in a single shift operation.

State-owned SAIC Motor is said to have resumed production of MG, Maxus and Volkswagen cars. PSA Group has also resumed operations at its Wuhan facilities. 90 percent of FCA Group dealerships and 95 percent of their staff are back to work.

Among American car brands, Ford has started operations, but is said to be limiting the travel of employees from Wuhan and Hubei regions. Electric carmaker Tesla has also restarted production at its facilities.

Amongst the luxury car brands, BMW, Mercedes-Benz, Jaguar Land Rover and Volvo are said to be resuming operations too. BMW was the first to resume while Mercedes-Benz started production just recently.

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Kia's statement on its rumoured exit from Andhra Pradesh

Earlier this week, there were reports suggesting that Kia might relocate its production facility out of Andhra Pradesh. The carmaker has now released an official statement denying all reports and termed them as untrue.

Kia's official statement:

The recent reports about relocation of our manufacturing facility outside of Andhra Pradesh are not true. We are receiving full support from the State Government of Andhra Pradesh under the dynamic leadership of Shri Jagan Mohan Reddy. Kia has a long term commitment to India market and has made an investment of USD 1.1 bn in the manufacturing plant at Anantpur. We will continue to offer world class, made-in-Anantpur vehicles and innovative mobility experience to our valuable customers in India. Request consumers to refrain from reports which do not cover these facts.

 

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