Honda India Cuts Car Production

"Our plan was to make more than 8,000 cars from November, but we'll make less than half of that [this month] due to a shortage of auto parts," said a spokeswoman for Honda Siel Cars India Ltd., who didn't wish to be named.

She said the supply shortage is "much worse" that caused by the March tsunami in Japan. "Production remains very fluid and we are assessing the situation week-by-week."

Honda India sources some electronic and under-body car parts from Thailand.

Honda Siel, which is 99.9% owned by Honda and 0.1% by India's Siel Ltd., makes the Brio and Jazz hatchbacks as well as the mid-sized City and Accord sedans at its factory at Greater Noida in the northern state of Uttar Pradesh. It also sells the CR-V sport-utility vehicle by importing them.

Honda Siel can produce up to 100,000 cars a year at the Greater Noida facility.

"We are trying to source auto parts from our Thai vendors' factories in China and Japan to lower the impact," the spokeswoman said.