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Regular-article-logo Friday, 26 April 2024

Auto leaders close down plants

This comes at a time the sector is already witnessing lower sales because of a weak macro-economic environment

Our Special Correspondent Mumbai Published 22.03.20, 09:11 PM
Auto dealers are also facing difficult times as states such as Maharashtra have directed the stoppage of all non-essential services.

Auto dealers are also facing difficult times as states such as Maharashtra have directed the stoppage of all non-essential services. Shutterstock

The automobile industry has emerged as the latest casualty of the coronavirus pandemic: market leaders from Maruti Suzuki India to Mahindra & Mahindra on Sunday announced the suspension of manufacturing operations to prevent the spread of the virus, with more players expected to join as many state governments have enforced lockdowns on account of the rapid spread of the virus.

The development is set to hit the auto ancillary industry as they may also have to curtail production or suspend operations. This comes at a time the sector is already witnessing lower sales because of a weak macro-economic environment even as new emission norms are set to kick in from April 1.

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Auto dealers are also facing difficult times as states such as Maharashtra have directed the stoppage of all non-essential services

In a statement, Maruti said it has decided to suspend production at its manufacturing facilities in Haryana with immediate effect due to the coronavirus outbreak. “The company will shut production and office operations at its facilities in Gurugram (Gurgaon) and Manesar (Haryana) with immediate effect till further notice,” the country’s largest car maker said in a communication to the stock exchanges.

The duration of this shutdown will depend upon government policy, Maruti said. The two plants in Haryana produce around 15.5 lakh vehicles per annum.

Honda Cars on Sunday said it has decided to suspend production at its two manufacturing plants in the country till the end of this month.

Production operations at both its manufacturing plants in Greater Noida (Uttar Pradesh) and Tapukara (Rajasthan) will be temporarily suspended from March 23 till March 31. The current intention is to restart production on April 1.

The focus was also on Maharashtra, one of the country’s major hubs, with key players suspending their operations. The state has seen the largest number of coronavirus cases so far,and chief minister Uddhav Thackeray hinted that it may even extend the curbs after March 31 if the situation did not show any improvement.

A statement from Mahindra & Mahindra said because of the heightened concern on the spread of the virus in the state, it has decided to suspend the manufacturing operations at its Nagpur plant with immediate effect; and two other facilities — Chakan (Pune) and Kandivali (Mumbai) from Monday night onwards. None of the plants were working on Sunday.

“We are carefully monitoring the rapidly evolving Covid-19 pandemic and will continue to take swift and appropriate action on other plants in the State of Maharashtra and across the nation should the situation change. Meanwhile, all our offices across the country have already implemented Work from Home,’’ the company said.

Earlier, Tata Motors said that it has decided to rapidly scale down activities at its Pune facility to get to skeletal operations by the end of March 23.

The company said it was ready for plant closure by the end the following day if the situation so warrants.

Auto maker Fiat has closed down its Ranjangaon plant. “The temporary suspension is in response to the increasing prevalence of positive Covid-19 cases in Maharashtra and particularly in Pune,” the company said.

Luxury car maker Mercedes-Benz India has suspended operations at its Pune plant till March 31.

Force Motors, a major player in the inter-city commuter vans, has closed its Akurdi plant in Pune till March 31.

The stoppage of production was not restricted to the four-wheeler segment: Hero MotoCorp said it has suspended production at all its sites across the globe until March 31, 2020 in order to safeguard its employees against Covid-19.

Bajaj Auto is learnt to have decided to temporarily close down its facilities at Akurdi and Chakan till the end of this month.

Honda Motorcycle and Scooter India (HMSI) also announced suspension of operations across all its four manufacturing plants in the country with immediate effect.

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