Honda aims to strengthen its employment base to 1,000 people by current financial year

Honda Motor Company an established Japanese auto firm aims to strengthen employment capacity in India. The company plans to set up a second production unit by the end of the current financial year. The Indian division of Honda Motor, Honda Motor India Limited (HMIL) is a wholly owned division, and plans to target a 50% sale hike with the flow of 2 lakh pieces in 2014 to 15 financial year.

Honda Motor has effectively strategized its launches in India, the company has churned month on end profits amidst weak market economy. Many other established firms have struggled to generate desired sale incomes; the auto industry has witnessed a steep sale slump, the worst in ten years. There are signs of improvements noted in the month of May where some firms made commendable profits and some dint. Honda Cars India made impressive profits in May 2014 with 18% profits. The two profit sellers are Amaze and City; the company sold 7,044 units of City and 3,355 units of Amaze.

The company’s plan is to set up a second unit in Tapukara, a new establishment means increased labor output. Honda is thereby working on various outcomes to increase labor power. By the end of current fiscal the company is keen to employ 800 to 1,000 people in India said a company official. The company’s current employment strength is 9,000 sources through indirect and direct employment means at two of its established units Tapukara and Greater Noida. The capacity at Tapukara unit is more than 3,000 out of which about 2,200 hold executive positions.

All the new recruitments will be hired to work in new Tapukara unit, said a Honda company executive. The overall installation capacity is 1.2 lakh units, and the manufacture process will happen in two shifts. Honda is keen to increase its production output to 3 lakh units in coming 2 to 3 years within the 2016 to 17 financial period.

Honda Motor Company is keen to increase its auto component sourcing in India by two fold, inclusive of engine parts. The firm intends to enhance its export revenues to more than Rs 800 crore in current 2014 to 15 financial year. The new Tapukara unit is a big investment and a robust medium for manufacture and export expansion. Honda has invested Rs 3,256 crore on the plant, and the auto components will be distributed to Latin America, UK and South East Asia.

The stagnant economy has not affected the profitability of Honda Cars India, Amaze and City are biggest contributors. Amaze is a sub four meter sedan and a sedan version of Brio. The attractive characteristics of the car that has made it an instant success is the enormous cabin room for a sub four meter car, world class 25.8kmpl mileage and potent iDTEC diesel and iVTEC petrol engine. Honda has used a similar strategy for its all new City, also fitted with iDTEC and iVTEC engines. It is an incredibly fuel efficient model as well, generates a mileage of 26kmpl. A big new Honda launch to look forward to is Mobilio MPV, the due launch date is just a month away, and is filled with great surprises.