Hero Honda to delay production from new plant located in Haridwar

Hero Honda to delay production from new plant located in Haridwar

India’s leading two wheeler manufacturer Hero Honda has said that they have decided to defer starting production from their upcoming plant at Haridwar.

The company had originally plant to start the production at this plant starting October this year.

However, the production at this new plant is likely to begin sometime next year. Looks like the company took this decision as the demand in the market has dampened due to rising interest rates on auto loans.

Hero Honda Motors Ltd Vice-President Marketing and Sales Anil Dua had to say on this decision: “The management has taken a prudent decision to start production and dispatches from our upcoming Haridwar plant from the next fiscal considering the current slowdown in the two-wheeler industry as well as keeping in mind the ten-year tax break we are supposed to get.”

He further said that if they had started production this year, they would not have received full benefits of the tax break given by Uttarakhand government. Dua said: “As a company we would like to enjoy the full volume capacity of the plant once we start production from there. The current slowdown is temporary and we believe the industry will bounce back again.”