Honda plans to pullout two-wheelers production

Honda, Japanese auto major, has threatened to shift its two-wheeler plant from Haryana to outside India. The main reason of this unexpected decision is- labour problems. Honda Motorcycle and Scooter India (HMSI) has knocked the door of the Punjab and Haryana High Court and requested to sort out the labour problem. It said in its petition that if the present situation continues, the company will shift its production form Haryana or outside India. The current problem labour unrest is due to the formulation of the new long-term wage settlement after the previous three-year agreement expired on July 31 this year. The labours want more monetary benefits and the company says that it already giving good salary and incentives to the workers. And in present situation, it is not possible to increase salary and perks. Acting on the company's petition that seeks orders to end the strike, the high court has sent notices to the Haryana government and the labour union, asking them to file replies by October 15. Honda may left behind in the stiff competition in the two-wheeler market as Bajaj has launched its Kawasaki Ninja 250 R in India and Mahindra introduced Mahindra Rodeo and Mahindra Duro in the market.