Honda is in a very awkward problem. Earlier on, the demand for the Jazz was so low that the company had a pile of cars stocked up at dealers. Now with the recent price revisions, the demand has soared so high, that the Japanese automaker is not able to supply enough cars to the dealer. Furthermore a parts shortage has interrupted production, resulting in the company having to stop bookings for the Jazz. Some components, which are brought down from Japan are in short supply due to the Tsunami which took place earlier this year. Honda also sources parts from Thailand but a flood has caused delay in the production of the Jazz. Honda plans to double production at its Greater Noida facility but won’t be able to fulfill demand in the near term.
“The demand for Jazz has taken us by surprise. The initial production target for Jazz was much less. Dealers can’t take more bookings as they have lesser number of cars allocated to them and it becomes irritating for the customers to wait as long as six months for a car,” a Honda spokesperson said.
