Posted on December 7, 2021 12:40:00 PM 26227 Views Follow us By Mayank Dhingra Share-
Although Honda is restructuring its business, the company said it is committed to the Indian market and has developed a clear product line for the future.
Honda Motor India Limited (HCIL) has been streamlining its operations in the country since January 2020, when it announced its first VRS (Voluntary Retirement Scheme) exercise in preparation for the suspension of production at the Greater Noida plant. The Japanese automaker recently conducted its third VRS exercise in September 2021, and nearly 100 executives above the assistant manager level chose it. Honda Motor India conducted its third VRS exercise in two years. Nearly 100 executives above the assistant manager level chose it. The company said it was restructuring its business to achieve profitability. Honda India conducted its third VRS exercise.
According to our sister publication Autocar Professional, VRS focuses on senior management personnel in key businesses such as procurement, quality development, manufacturing, and marketing. While confirming the September VRS, a spokesperson told Autocar Professional that HCIL is restructuring its operations to a profitable level. Following the first VRS exercise in January 2020, the second round took place in July last year, when the company was preparing to close the operations of the Greater Noida plant.
According to sources, nearly 1,500 employees, including more than 950 manufacturing employees, resigned with huge salaries. It is estimated that since Greater Noida announced the closure of operations, nearly 500 employees have left the company last year.
HCIL currently only operates in its Tapkala plant in Rajasthan, where City, Amaze, Jazz and WR-V are located.
When the VRS news was released, the company also saw the high-profile departure of Senior Vice President and Director of Marketing and Sales Rajesh Goel, who stepped down after 25 years in office. He has been working at HCIL since its establishment and stated that he quit for personal reasons.
In addition to Goel, other notable leavers include brand and marketing communications director Navneet Kaur, who joined Citroen India in October as the head of marketing and public relations. Vineet Mishra, Assistant General Manager of Purchasing Operations, was transferred to Suzuki Motorcycle India as AVP. Both Kaur and Mishra have worked at HCIL for nearly two decades.
According to industry sources, more and more employees are looking for new opportunities in brands such as Ola Electric, Citroen India and MG Motor India, which are considered top recruiters. The exit of top companies may upset the remaining workforce, but this does not necessarily mean that HCIL is considering some intense research on Ford or General Motors. Honda soon to be launched in India
The brand insists that there is a clear product line in the future, including a new SUV based on the City platform, which will be launched in 2023. Honda is also preparing to launch the City Hybrid in India in early 2022.
What is your opinion on Honda's streamlining business in India? Please let us know in the comments below.
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