Honda will cut production at its Indian subsidiary by up to half from May 2011. This will result in a revenue loss of around Rs 200 crore for the local operations.

The proposed reduction is because of disruption of component supplies in the wake of last month's earthquake and tsunami in Japan. The Greater Noida-based plant of Honda, the joint venture between Honda and the Siel group, will operate a single shift as against the two shifts it would operate before the disaster struck Japan.

The Japanese auto major, which is facing a shortage of critical components such as engines and electrical parts, intends to normalise production within the next three months.

In India, Honda produces the Jazz, City, Civic and Accord with indigenisation levels of 77%, 76%, 74% and 28%, respectively. The sports utility vehicle CR-V is imported as a completely built unit.

According to a statement Honda Siel issued on Monday, "The situation with parts supply in Japan remains fluid, production of component parts and vehicles at Honda plants is at approximately 50% of the original production plan. Honda is working with its suppliers to help re-establish their operations, while evaluating other possible sources for those parts in the supply chain."

Suzuki , which operates in India through Maruti Suzuki, may also face problems. Japanese carmakers in India, including Nissan , sold around 12.93 lakh units, or 52% of the total 25.20 lakh cars sold in fiscal year 2011.