Top auto manufacturers defer reopening plants

NEW DELHI:  Even as the government allowed manufacturing facilities to resume operations after April 20, major car-makers like Maruti Suzuki, Hyundai, Toyota and Honda have decided to delay opening their facilities due to difficulty in sourcing components. Automakers said that the nationwide lockdown makes it difficult for them to get raw materials required since many vendors are located in Covid-19 hotspot zones.

Concerns also remain on how much inventory will accumulate if the lockdown is extended further and dealer showrooms are asked to remain shut. It is now more than a full month after the government imposed a nationwide lockdown to control the spread of Coronavirus.

“We tried to fix everything such as getting permission from local bodies to connecting with vendors and labourers. Owing to certain complexities, we decided to remain closed for now,” said an industry executive whose manufacturing facility is located in the outskirts of Chennai. The country’s largest carmaker Maruti Suzuki India (MSI) is said to be looking at matters closely before re-starting operations at its two plants in Haryana.

MSIL Chairman RC Bhargava has repeatedly said that the availability of components is one of the major requirements for restarting the factories.

Honda Cars India Senior Vice President and Director (Marketing and Sales) Rajesh Goel said that while its Tapukara plant falls in green zone, when actual production will commence will be decided later. “Currently, the teams are involved in preparatory activities required before resumption of operations like reworking all the processes to comply with the distancing norms,” he pointed out.