Honda Motorcycle, India's second-biggest two-wheeler maker, announces VRS

 

Employees above the age of 40 or who have completed 10 years in the company are eligible for the scheme

Honda Motorcycle and Scooters India (HMSI) introduced a voluntary retirement scheme on Tuesday as it seeks to “realign its production strategy” and improve overall efficiency in these “uncertain times,” the company said in an internal circular to its employees. Employees above the age of 40 or who have completed 10 years in the company are eligible for the scheme

The development at HMSI, India’s second largest two-wheeler manufacturer, comes a fortnight after Honda’s car manufacturing arm, Honda Cars India announced re-aligning its production. As part of the move, it has consolidated the manufacturing operations for vehicles and components at its Tapukara plant in Rajasthan for all domestic sales and exports, it said on December. HMSI’s communiqué doesn’t share details on re-alignment.

With a combined annual capacity of 6.4 million units HMSI has production facilities at Manesar (Haryana), Alwar (Rajasthan), Narsapura(Karnataka) and Vithalapur (Gujarat).

“In order to maintain existence in this competitive two-wheeler market, it is essential to continue with high efficiency and competitiveness. Therefore, keeping in view all the above reasons, the management has introduced a ‘VRS’ for all the associates who want to retire voluntarily from the company before their fixed retirement age, so that they can be relieved from the company gracefully,” Naveen Sharma, Division Head - General Affairs, HMSI, said in the circular, a copy of which has been reviewed by Business Standard.