Maruti Suzuki restarts manufacturing at Manesar plant with one shift a day
Maruti Suzuki, India’s largest carmaker has restarted manufacturing at its Manesar plant.
- However, the company will operate in a single shift for now with nearly 4,696 employees and workers, as per a Times Now report.
- The company’s stock gained 2.8% to trade at ₹5,141 at 10:59 am.
The company’s stock gained 2.8% to trade at ₹5,141 at 10:59 am.
After the government had given out its guidelines of partial relaxation of lockdown, the company had plans to restart both its plants in Haryana — Manesar and Gurgaon that can produce 15.5 lakh units per annum. But it was subject to many factors.
"The availability of components is one of the major requirements for restarting the factories, and the company management is looking into it. I guess it will take a few days to see how and when we can start operations," Maruti Suzuki Chairman RC Bhargava had earlier told news agency PTI.
The Prime Minister Narendra Modi said that lockdown norms will be relaxed starting April 20. As per the guidelines issued by the Ministry of Home Affairs, industrial establishments in the rural areas outside the Municipal Corporation zones will become operational — including manufacturing and export units.
While Maruti’s Manesar plant falls outside municipal corporation, Gurgaon plant is within city limits.
Auto industry stares at losses of over ₹13,000 crore
It’s been over a month since the major carmakers in India suspended operations due to plant shutdowns in wake of the Coronavirus pandemic. Auto component makers and dealerships also halted operations due to the lockdown.
The auto industry had been facing troubled waters long before the pandemic hit the country. The car sales for the company fell by over 50% in March. The industry is now staring at losses of over ₹13,000 crore due to forced shutdowns. That will also impact the economy as a whole since the industry also contributes around 7.5% to India's overall GDP.
Maruti Suzuki chairman expects sudden surge in demand after lockdown
However, as the world goes practising social distancing R C Bhargava, chairman at Maruti Suzuki believes that there will be a sudden surge in demand after the lockdown is lifted, he said in an interview with Bloomberg last month.
“If buyers become apprehensive of sharing space with another passenger it will increase demand for vehicles. It’s not the same India anymore. People’s attitudes toward buying will change,” he said.
However, in spite of the possible silver lining, the auto sector which was being battered down by slowing sales and increased costs, is now in deeper trouble. This will cost the country a million jobs across dealerships, frontline workers and others.
While extending India's lockdown Modi hinted at a calibrated re-opening of economy, say experts
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