#Coronavirus: Automobile Industry Shuts Down; Tata Motors, Maruti, Bajaj, Hyundai, JCB Stops Production
Maharashtra government has announced lockdown in four major cities including Mumbai, Pune, Nagpur and Pimpri Chinchwad due to following the COVID-19 outbreak till March 31.
Many industries and businesses are shutting down to overcome the pandemic
The pandemic has forced many automotive manufacturing plants, that make cars, bikes, trucks and earthmovers, in Maharashtra to shut down operations till March 31, 2020.
Read to find out the shut down of the automobile industry in India…
Shut Down Advised by SIAM till March 31!
The Society of Indian Automobile Manufacturers (SIAM) recommended all vehicle manufacturers and component manufacturers to consider plant shutdowns to overcome the critical period.
Rajan Wadhera, the President, SIAM said, “With a view to the deteriorating situation arising out of COVID-19, SIAM and ACMA have requested their member in OCM and Auto Component industry to consider plant shut down for a limited period to overcome the critical period so that workers are not exposed to the virus. This is in line with SIAM’s motto of Building the Nation, Responsibly.”
No automotive company has so far announced any cut back on salaries to the employees during this period.
Tata Motors Suspends Operations in Maharashtra and Jaguar Land Rover in UK!
Tata Motors has the biggest production base among automotive companies in Maharashtra located in the Pimpri-Chinchwad industrial belt. Commercial as well as passenger vehicles are manufactured there. Tata Motors was the first company to announce it had cut down operations at its manufacturing plant in Pune and may shut it down temporarily by the end of March 24 if the need arises. The temporary suspension will be in effect till March 31 after which things will be reviewed. The plant closure will also hit the businesses of its suppliers which are majorly based in Maharashtra.
Guenter Butschek, MD and CEO of Tata Motors said, “Furthermore, the company will continue to closely monitor the situation in other states where it has offices and plants and make ‘appropriate and proactive decisions’ should the need arise.”
Tata Motors’ luxury unit Jaguar Land Rover is temporarily suspending production at its UK manufacturing facilities over the course of next week. The company has several manufacturing plants in the United Kingdom. It intends to resume production in the week of April 20, reviewing the conditions.
JLR said, “The company has its plants in Brazil and India continue operating. The company also has a joint venture in China with Chery Automobile. The JV plant in China reopened in the week of February 24 as life is beginning to get back to normal in that country.”
Bajaj Auto, Fiat, Force Motors, JCB, Mercedes-Benz Join the League!
It was followed by Bajaj Auto, which decided to shut down its corporate office and factory in Chakan, ‘in line with the local instructions.’
Fiat Chrysler Automobiles’ (FCA) joint venture manufacturing facility with Fiat India Automobiles Private Limited (FIAPL) in Ranjangaon – announced on March 22 that it will work with the government to temporarily close down operations and suspend production till March 31.
Force Motors, the minibuses maker, announced on March 21 that all manufacturing operations at its Akurdi, Pune plant will be shut till March 31.
Construction equipment giant JCB has also shut down its excavator manufacturing facility at Chakan till March 31.
Mercedes-Benz India has also decided to temporarily suspend the majority of production at its manufacturing facility located in Chakan as well as work in selected administrative departments, starting 21st March to 31st March. Further measures will be decided according to the situation.
Automotive Companies Shut Factories and Plants in Other Parts of India As Well!
Hyundai Motor India Ltd on March 22 announced it is shutting its Chennai based factory starting from March 23, due to significant rise in Covid – 19 cases for an indefinite period.
Maruti Suzuki India Ltd on March 22 announced its decision to stop manufacturing vehicles in its two factories located in Haryana until further notice. Work at the research and development centre in Rohtak will also be stopped from March 23.
Hero MotoCorp Ltd also announced its decision to stop its functions in factories across the country, including its research and development facility in Jaipur till March 31. The manufacturing capacities in other nations like Colombia and Bangladesh will also remain closed.
According to senior executives of the major component manufacturing companies, other Original Equipment Manufacturers (OEMs) are also likely to stop its operations soon.