India’s second-largest carmaker Hyundai Motor India Limited (HMIL) too joined other OEMs in declaring production holidays at its plants in Chennai during August. Despite two new launches of Venue and Grand i10 Nios, which have received an overwhelming response, the company has to go for a production holiday due to prevailing market conditions as well to avoid inventory pile-up, the sources here said.
The Korean carmaker has announced no production days across all the departments, including body shop, engine/transmission lines, paint shop, assembly shop and support teams. Due to prevailing market conditions, there will be no production across these departments.
As per the notice issued, the company already had NPD (no production days) on August 10 & 12 in its body, paint, assembly shops and support teams department. The power train production will be suspended for 10 shifts and the engine shop department will be shut for nine shifts. The transmission line too will be suspended for production upto six shifts. All these production suspensions across various departments will be in August and some of them have already undergone production suspension, said the notice.
According to the sources, the company’s flexible manufacturing process has been aligned completely to the prevailing market conditions and is equipped seamlessly to the varying market requirements. The company accordingly streamline production schedules and both the plants are working as per requirement.
All the major OEMs, including Maruti, Ashok Leyland, Tata Motors, Mahindra & Mahindra, Toyota Kirloskar, TVS group companies, Bosch, Wabco among others have declared production holidays in the recent days due to weak market conditions.
Mitsuba Sical India Ltd, a component maker has also announced that it will have to reduce its production. In its letter to suppliers a few days ago, the company informed that it may have to reduce its production as per customers demand and hence suppliers to restrict resources such as raw material, manpower.
Toyota Kirloskar too has gone on production holidays at its two plants on August 16 and 17 due to the low market demand of vehicles and high stock at the factory premises of around 7,000 units.
