In what seems to be quite a tragic incident at Honda Car India's Greater Noida production facility, more than half of the manufactured vehicles have been damaged by paint fumes from an adjoining plant. It has forced the company to stop the dealer dispatch of these vehicles, which include Mobilio MPV, Brio hatchback and CR-V SUV. Also, it has resulted in leaving a huge pile-up of inventory at the company stockyard.
Honda Car India has currently two manufacturing units in the country: Greater Noida, Uttar Pradesh & Tapukara, Rajasthan. The former takes care of development of Mobilio MPV, Brio and CR-V, while the latter wheels out Amaze compact sedan and City mid-sized sedan. The Greater Noida facility has an annual capacity of producing 1.2 Lakh cars. However, the company hasn't confirm the exact number of cars affected in the incident, which occurred a few days ago. But, media reports indicate that as many as 4,000 cars were affected and damaged due to this incident. The company is seeking expert advice to manage the crisis.
The root cause of damage is said to be an under-construction factory adjacent to Honda Cars India, which was being painted concurrently. The paint fumes caused spots to be formed on the cars, especially over the chrome and plastic parts and the roof top. The adjacent factory in question supplies components to large Korean electronics manufacturers. Mobilio vehicles, which accounted for a majority of the cars parked in the yard, were the worst affected by the fumes. "A batch of our cars parked in the CBU yard of our Greater Noida plant sustained some minor paint spots due to a painting activity in a neighbouring plant of another company," a Honda spokesperson based out the factory said.
The spokesperson said the company has withheld the dispatch of affected cars. "We are in the process of ensuring the necessary rectification, including change of parts wherever required, to maintain HCIL's stringent product quality standards," the spokesperson said. The company is likely to face a lean patch now as it takes steps to rectify the damaged cars before dispatching them.
Source - Economic Times