Covid-19 impact: Honda Cars India comes up with voluntary retirement scheme

Honda Cars India has introduced a voluntary retirement scheme (VRS) as it seeks to rein in costs and bring efficiency. A spokesperson confirmed the development. 

“The VRS scheme, (launched on 24 July) has been made so that it provides a win-win situation for associates and the company gets a chance to enhance efficiency in our operations given the current market situation and industry forecast.” It’s a voluntary scheme for associates over 40 years of age or who have completed 5 years of service, the spokesperson added.

In an interaction with Business Standard, Gaku Nakanishi, president and chief executive, Honda Cars India, said, despite the pandemic , Honda’s plans with regards to product pipeline and capital expenditure from the pre-Covid phase stays the same.