Honda Cars India Ltd (HCIL) said on Wednesday it has stopped production at its Greater Noida facility to realign its manufacturing operations with the goal of improving business efficiency.

“In order to maintain sustainability of operations by leveraging production and supply chain efficiencies, HCIL has decided to consolidate manufacturing operations for vehicles and components at its Tapukara plant in Rajasthan with immediate effect for all domestic sales and exports,” it said in a statement.

“The company has stopped the production in Greater Noida plant. All head office functions, India R&D centre and spare parts operations will continue at Greater Noida.”

Gaku Nakanishi, HCIL President and CEO, said despite an uptick in sales in the last three months, the current market conditions remain unpredictable for the industry at large.

“The impact of Covid-19 has pressed us to strengthen our constitution, and to achieve the same, HCIL has decided to consolidate its manufacturing operations by making the Tapukara plant a unified manufacturing base,” he said.