Coronavirus Pandemic has hit the Indian automobile industry hard with companies ceasing production. With the nationwide restriction till 3rd of May 2020, automobile manufacturers had no option but to close down operations. With the closure of production units and temporary closure of dealerships, automotive companies are staring at huge financial losses. There is some good news for the automotive industry amidst the gloom. The Ministry of Commerce wrote a letter to the Ministry of Home affairs to allow automotive manufacturers to resume services with reasonable safeguards.
The Ministry of Commerce further added that automobile companies should resume operations with a minimal workforce. Companies should be following the necessary guidelines like proper social distancing and sanitation norms. In a letter to the suppliers dated 14th April, Chennai-based Renault Nissan stated that it wants to resume vehicle and engine production in June 2020. The automotive manufacturer will resume production of components for exports and after-sales by May.
Last week, the Haryana Government gave permission to Maruti Suzuki Plant to restart production at their Manesar-based manufacturing unit. Maruti Suzuki Chairman R C Bhargava had said that the Indian automaker would resume operations whenever it could to start sales of vehicles. Currently given the shortage in component supplies, the company would not be in a position to start operations added Bhargava.
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Due to the lockdown, India saw a massive reverse migration as employees returned to their hometown. So, if the automotive companies want to initiate production, the lack of workforce would become an issue. The train and bus service resumption would be key here if the companies want to open their individual production facilities. We will get more clarity on the resumption of automotive activities in the coming days.