2011 did not fare well for Honda owing to the Flash Floods that hit Thailand and as a result the productions and sales rate of Honda locomotives fell all across the word. Honda which has electronic component making units in Thailand lost all its plants to the flood and thus there was a massive downfall in the sales rate of Honda. Now since Honda has given out its blood and bone to come back to the right track, they have doubled the production rate of their automobiles to a great extent and as a result the sales rate of Honda is now increasing. Honda India was optimistic at the beginning of this year and thus the company has now started on a good note and is selling multiple units. The production rate of Honda automobiles at the Greater Noida plant is also set to increase and upon that, Honda plans to open a manufacturing plant in Rajasthan as well which will help them to meet up with the increasing demand. Honda has already increased the production rate of its Greater Noida Plant to a staggering 120,000 units and hopes to gross the same figure from the Rajasthan plant.
The Rajasthan unit of Honda presently controls the components of the car at the moment and thus now total production of the car will be done from the plant from now on. By doing this, Honda feels that it will be able to meet up to the demands of their cars and can be in a position to increase the production rate whenever it is needed. The Rajasthan plant will be holding up a major part of the production and Honda has said that the plant will start with an aim of manufacturing 60,000 units per year and will increase the rate of production accordingly. Honda predicts that the figure will somewhat rise to around 2 lakh units per year once Honda launches more of their automobiles in the market.
Honda reported has around 600 acres of land in Rajasthan on which they will be setting up the manufacturing plants of two of their cars. Another point that Honda is taking into consideration is that the prices of petrol are increasing at an alarming rate and thus more and more people are going for diesel cars than petrol cars. And Honda hardly has any diesel cars in India. Thus in order to increase their rate of sales, Honda now plans to bring diesel variants of its cars in India in order to ascertain a stronghold over the Indian market. There are three cars on which Honda is working right now. These are Jazz, City and Brio. These three cars will probably have diesel engines now so that the sales demand of Honda cars can escalate and bring forth a good percentage in the growth. But unfortunately people have to wait since Honda is in no hurry to launch these cars in 2012 and will take time to bring them here to India.