Indian Auto Makers Adjusting Production on COVID Slowdown
Indian Auto ProductionBCG

Indian Auto Makers Adjusting Production on COVID Slowdown

As the COVID tsunami is spreading to most parts of the country, Indian auto manufacturers, citing various reasons, have started to reduce automobile

As the COVID tsunami is spreading to most parts of the country, Indian auto manufacturers, citing various reasons, have started to reduce automobile production. Leading car maker Maruti Suzuki announced on 28 April that it will shut down Its factories in Haryana to Make oxygen available for medical needs and that same decision is taken by Suzuki Motor Gujarat. Maruti Suzuki said “As part of the car manufacturing process, Maruti Suzuki uses a small amount of oxygen in its factories while relatively much larger quantities are used by the manufacturers of components. In the current situation, we believe that all available oxygen should be used to save lives. Accordingly, Maruti Suzuki has decided to advance its maintenance shutdown, originally scheduled for June, to 1st to 9th May. Production in all factories will close for maintenance during this period.”

Suzuki Motor will suspend operations at Gujarat as it is facing difficulty procuring parts due to a shortage of industrial-use oxygen amid the pandemic. The company says it will decide when to resume production while monitoring the state of coronavirus infections in the country.

Tata Motors has decided to calibrate production of its vehicles with actual demand to prevent oversupply and a pile up of inventory at the company and dealers. It said “The lock-down enforced in various parts of the country is expected to impact vehicle demand temporarily. Hence, the company has set in motion a comprehensive ‘Business Agility Plan’ to protect and serve the interests of its customers, dealers and suppliers. By carefully calibrating and matching supplies with retail demand, Tata Motors shall ensure that optimal levels of inventory are maintained with dealers to meet whatever customer demands arise and also be prepared for a rebound in demand once the situation returns to normalcy.”

Toyota Kirloskar Motors Limited has announced the closure of its passenger car manufacturing plant in the southern state of Karnataka between April 26 and May 14. However, officially the company maintained that this is a routine maintenance closure.

MG Motors India Limited has announced that it will shut down its plant in the Gujarat, initially for seven days to protect its employees. The plant has an annual production capacity of 80,000 units with employee strength of 1500.

Two wheeler manufacturer Hero Motocorp has announced that it is closing down all its six manufacturing units across the states of Haryana, Rajasthan, Andhra Pradesh, Uttarakhand and Gujarat, but no information is available on the duration of such a closure.

Suzuki Motorcycle has reduced the number of shifts from three to one and will run the Gurgaon plant on one shift from April 28 to May 1, 2021 . It said "The safety of our employees is of utmost importance to us at Suzuki Motorcycle India. Hence, looking at the exponential surge in COVID-19 cases in the country, we have decided to reduce the number of production shifts from 3 to 1 from April 28, 2021, till May 1, 2021, as a precautionary measure. We will observe the situation and accordingly resume normal operations from 2nd May 2021."

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