With apprehensions about the spread of Coronavirus, it is believed that the situation will be challenging on the production front in the auto sector.
The latest wave of Coronavirus has slowed down industrial activity in major manufacturing units as factory production has reduced. The delivery of vehicles is being hindered for the common people as well as some top people.
In view of the increasing transition and closure of showrooms, lockdown and mobility restrictions should be imposed in states and cities. Companies announcing the closure include Toyota, Maruti Suzuki, Hero Moto and Honda Motorcycle and Scooter India (HMSI). Whereas those reducing output include Havells, Nippon Paints, Panasonic, Mercedes-Benz, Mahindra & Mahindra (M & M), LG (Pune factory) and Tata Motors.
The situation will be challenging on the production front
With apprehensions about the spread of the corona virus, it is believed that the situation will be challenging on the production front. Especially the activity of suppliers and sellers of raw materials has also been affected.
Many companies have stopped the maintenance of their factory because they are waiting and watching the situation. HMSI (Honda Motorcycle and Scooter India) has said that it is stopping production from May 15 in all four plants (Haryana, Rajasthan, Karnataka, Gujarat). The company said, “Honda will use this temporary production halt to further its annual plant maintenance activities.”
- Havells president Anil Rai Gupta, who also runs Lloyd’s brand, said the company is reducing production in factories. Anil Rai Gupta told TOI, “Markets are closing and demand is low. We have seen a 20-30% reduction in demand. So, we are cutting production, ”.
- Sharad Malhotra, president (Automotive Refinishes and Wood Coatings) of Nippon Paint India, said the quantity is already 40% lower and there is uncertainty. Malhotra said, “The semiconductor setup that relies on man power is taking a double whammy because worker aviability is 30 to 40 percent lower.”
- Hero Moto has also announced a “temporary suspension” as a precaution. The company said, “Hero Moto has decided to temporarily stop operations at all manufacturing facilities.” In many states, the demand has been affected by the local lockdown.
- Toyota has stopped production in factories in Karnataka and is trying to extend the lockdown time to maintain COVID protection measures.
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