- Some of the top automakers of India have shut down their factories as the Covid-19 pandemic is leaving a trail of infected people through the nation.
Some of the top automakers of India have shut down their factories as the Covid-19 pandemic is leaving a trail of infected people through the nation.
The step is being taken to protect staff and to help the Centre’s and state governments ‘ efforts to ensure social distance.
On Sunday, Maruti Suzuki India Ltd said it would close its factories in Haryana’s Gurugram and Manesar, as well as its research and development center in Rohtak.
“The duration of this shutdown will depend on the policy of the Government,” said Maruti Suzuki in a statement.
Honda Cars India Ltd will shut down both its production facilities in Greater Noida, Uttar Pradesh and Tapukara, Rajasthan from Monday to March 31. A decision to reopen them on April 1 will depend on advisories from the government.
Hero MotoCorp Ltd, India’s largest two-wheeler manufacturer, said it would shut down all of its plants across the country, as well as an R&D facility in Jaipur, until March 31. Plants are also to be closed in Colombia and Bangladesh.
“Employees at all other functions and locations, including the Innovation and Technology Center (CIT) in Jaipur in the northern Indian state of Rajasthan, will continue to work from home, except for those whose physical presence is mandatory to operate the vital day-to-day services,” Hero MotoCorp said in a statement.
Honda Motorcycle and Scooter India Pvt. Ltd, the second-largest two-wheeler manufacturer in the world, said it would shut down all of its four plants spread across Haryana, Gujarat, and Karnataka.
With the number of cases that occur in Maharashtra’s Pune district and Pimpri-Chinchwad area, automakers like FCA India Automobiles Pvt. Ltd, Mahindra and Mahindra Ltd and Tata Motors Ltd have also agreed to end production with manufacturing capacities in the vicinity. Many automotive firms are expected to follow suit in the coming days, according to senior executives at major auto parts manufacturers.
“In light of increased concern over the spread of coronavirus in Maharashtra, we agreed to immediately suspend production operations at our Nagpur plant and Chakan (Pune) and Kandivali (Mumbai) from Monday evening. None of the plants are operating on Sunday, March 22, 2020, “Mahindra and Mahindra said on Sunday in a regulatory filing.
Tata Motors said it would dramatically reduce operations by Monday’s end and be able to shut the plant in Pune by Tuesday’s end if the situation worsens.
“Both Fiat Chrysler Automobiles (FCA) and Fiat India Automobiles Pvt. Ltd (FIAPL), the joint venture manufacturing facility of the FCA in Ranjangaon, today declared that it will work with the government to temporarily close operations and suspend production to protect the health and safety of employees, “said FCA India on Sunday. The suspension, which will remain in effect until the end of March, is in response to the prevalence of Covid-19 cases in Maharashtra.
Low car sales exacerbated by the Covid-19 outbreak have forced automakers to shut down plants, in addition to ensuring workers ‘ health. Footfalls at car dealerships have halved over the past week, leading to a significant drop over retail sales.
In addition to the efforts of the Union government, governments including Maharashtra, Rajasthan, and Gujarat have mandated a full lockdown to protect more people from coronavirus infection.
A senior executive at one of the largest automotive parts manufacturing companies, who declined to be called, said most automakers are likely to shut down their manufacturing capacities to reduce future risks to their employees.
“And the demand scenario for April is so bleak that running assembly lines make no sense. Basic hygiene requirements are not complied with in part manufacturing companies at Tier II and III-level. Therefore, it is in everyone’s interest to have the facilities shut down for a time, “the executive said.
