With the aim to prevent inventory build-up in the midst of ongoing slowdown in the domestic market, Honda, the Japanese car major would continue to cut its India output by over 45 per cent for the next six months.

It was confirmed by the company that its planned release of hatchback Jazz in the Indian market is on schedule. The company is also thinking to increase the prices of its various models.

Honda Siel Cars India President and CEO Masahiro Takedagawa informed, "We have already adjusted our productions. Today our inventory level for India is quite appropriate, two weeks for our own hand and two weeks on dealers' side."

He further added that the production of the company, which is present in India through a joint venture with the Siel Group, has been cut to 200 cars a day in a single shift after the beginning of this year with a capacity of producing 380 units a day in two shifts.

"After the market recovers and once we decide to increase production, it takes about two months to go back to full production again. Probably for the next six months, single shift operations will continue," said Takedagawa when asked how long the company plans to continue the production cut.

The company is mulling to raise the prices of its cars due to rising input costs and devaluation of rupee in the international market.