The company said it will resume production of the car that is being rolled out from its Greater Noida plant in the first week of next month.
"There will be no production of the Honda City in the month of August and the manufacturing of the car will resume in first week of September," Honda Cars India Ltd (HCIL) said in a statement.
The company has decided to shift the entire production of the all-new Honda City to its Tapukara plant (Rajasthan) in order to meet the rising demand of its models, it added.
HCIL had launched Mobilio in the country last month.
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The company's Tapukara plant has an installed capacity of 1.20 lakh units per annum and is currently running on single shift. It has been producing Honda Amaze since February, 2014 when the assembly operations began in the plant.
The Greater Noida plant also has an annual capacity to roll out 1.20 lakh units.
The company has received an overwhelming response to both the City and the Mobilio, and it is necessary to maximise production at both the plants for the benefit of the customer, he added.
The fourth generation Honda City, which was launched in January this year, has been extremely successful in the Indian market since its launch in January this year.
The cumulative sales of Honda City for January-July period stood at 53,605 units the company said adding the model has established itself as the segment leader with more than 50 per cent market share in its segment.