Given the unprecedented situation owing to the spread of Covid-19, a number of vehicle and component companies on Monday announced suspension of production at their factories across the country. Both SIAM and ACMA, the apex bodies of vehicle and parts manufacturers, have called their member companies to shut production at least for a few days to avoid any untoward incident. In these turbulence times, this is the second time that the Indian automotive industry has been forced to absorb suspension of production in the 2020 fiscal. Earlier last year, between mid-July and late November, the industry was forced to shut their operations due to overall economic slowdown, lack of liquidity and new axle norms.
Almost all the segments of the industry have reported a strong double-digit degrowth except in February. While a few segments have shown some resentment in February, the two-wheeler industry has been the worst-hit with high inventory levels among others. Earlier companies such as Maruti, Tata Motors, Mahindra & Mahindra, Hero, among others, announced suspension of production for a week.
Rajan Wadhera, president of SIAM, said “With a view to the deteriorating situation arising out of Covid-19, SIAM and ACMA have both requested their members (OEMs and component makers) to consider plant shut down for a limited period to overcome the critical period so that workers are not exposed to the virus. This is in line with SIAM’s motto of ‘Building the Nation, Responsibility’.”
While two-wheeler major TVS Motor declared two days production suspension across its plants and its offices effective on Monday citing the well-being of employees, city-based Royal Enfield declared suspension of all operations globally, starting Monday, March 23 till March 31. This will include the company’s manufacturing facilities across Tiruvottiyur, Oragadam and Vallam Vadagal in Chennai, technical centres across Chennai and at Bruntingthorpe, Leicestershire in the UK, and all company offices and company owned dealerships in India. The company has further issued advisories to all dealerships in India to shut down for the same time period, or follow local administrative orders, as may apply.
TVS group companies such as Sundaram Clayton and Harita Seating Systems have announced two-day production cut across their plants, effective Monday. They said they would take further steps after reviewing their situation.
Leading auto components maker, Motherson Sumi Systems similarly has decided to close its manufacturing facilities and offices. The duration of such closure or shutdown or reduced operations, will depend upon the policies and directives of the respective states governments and Union Territories, the company said in a release.
Toyota Kirloskar Motor in a release said that, considering the recent developments on the COVID-19 outbreak in the country, the company has taken certain additional measures. In view of the orders pronounced by the Karnataka government for all labour intensive industries to work at 50% of their strength on alternate days. Keeping the safety of employees as the top priority, TKM has voluntarily decided to temporarily halt production in its plant in Bidadi, Karnataka till further announcement.
Hyundai Motor India has said that keeping in mind the prevailing dangerous situation, the company will be taking the preventive counter-measure of suspending its manufacturing operations at the Chennai facility from Monday, March 23, till further notice to stop the spread of coronavirus (COVID-19) – a global pandemic. We will await further notifications from state government to resume plant operations.
Suzuki Motorcycle India has also joined others by halting its Haryana plant operations. The company said that it has suspended production at its manufacturing plant at Kherki Dhaula, Gurgaon till further notice. This is in view of the precautionary measures taken in the wake of the COVID-19 pandemic and in line with the Haryana Government directives in this regard.
Truck maker Volvo Eicher has said that the unprecedented situation owing to the spread of COVID-19 and various advisories shared by the government, the management has decided to suspend the operations at various plants starting Monday, March 23, 2020, till March 31, 2020. This will include manufacturing facilities in Pithampur, Baggad, Bhopal and Thane.
Parts maker LG Balakrishnan & Bros on Monday announced that it has decided to suspend manufacturing operations located at the following states(ie) Haryana, Maharashtra, Uttarkand and Rajasthan from (24.03.2020) till further notice Further, the duration of such shutdown for the above and other manufacturing facilities will depend upon the directives of the respective states government and shall be complied with accordingly.
“We would like to inform you that considering the present situation of spread of COVID -19 and in view of the government policy and directions given, to ensure safety of its stakeholders including employees, management decided to close all its office and pants at Coimbatore (Tamil Nadu), Pune (Maharashtra), Sricity (Andhra Pradesh), Gurugram (Haryana), Pantnagar (Uttarakhand) from Monday untill further notic,” parts maker Pricol Limited informed the stock exchanges on Monday.
