Honda Motorcycles offers voluntary retirement in India, letter shows

Scooters India

06/01/2021 05:47

By Sudarshan Varadhan and Aditi Shah
    CHENNAI, Jan 6 (Reuters) - Honda Motor Co  7267.T  is
offering voluntary retirement to employees of its motorcycles
and scooters unit in India amid slowing demand in the country
following the COVID-19 pandemic, a company letter shows.
    Honda Motorcycles and Scooters India (HMSI), the country's
second-largest manufacturer of two-wheelers, made the offer to
"maintain its existence" in a competitive market, it said in a
letter to its employees' union dated January 5. 
    "The Indian auto industry is going through an exceptionally
challenging phase considering the prolonged demand slowdown and
economic fallout from the coronavirus crisis," HMSI said in the
letter, which was reviewed by Reuters.
    "In these uncertain times, we are aligning our production
strategy for improved overall operational efficiency with the
objective of long term business sustainability," it said.
    HMSI did not immediately respond to an email seeking
comment.

 (Reporting by Sudarshan Varadhan: Editing by Neil Fullick)
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