With the government easing nationwide restrictions, economic activities are slowly starting to pick up again. The Ministry of Health and Family Welfare, Government of India has divided the whole country into Red, Orange and Green zones to identify the worst hit regions by Coronavirus. The Indian government is now gradually allowing industries to begin operations in orange and green zones. Maruti Suzuki had already resumed production at its Manesar plant on May 12 and from today, it has begun operations at the Gurgoan facility.
Coronavirus Pandemic had affected the Indian automobile industry hard with production units closing down. With the nationwide restriction till 3rd of May 2020, automobile manufacturers had no option but to close down operations. "You are kindly informed that Maruti Suzuki India Limited would re-start production of vehicles at its Gurgaon plant from the 18th of May 2020. All activities would be carried out strictly in accordance with the Government regulations and guidelines and observing the Company's own concern for the highest standards of safety”, Maruti Suzuki said in a filing to the stock exchanges.
The Gurugram facility produces various models like Ignis, S-Cross, Vitara Brezza and commercial vehicles. Both Manesar and Gurguram have the combined production capacity of 15.5 lakh vehicles per annum. The Gurugram district administration has given permission to run the facility on a single shift schedule with the number of employees at the plant capped at 4, 696.
Maruti Suzuki is already opening dealerships at selected locations with about one-third of dealers commencing businesses. Maruti Suzuki has around 3,080 dealerships across 1,960 cities in India. Recently, Maruti Suzuki announced that its March-quarter profit decreased by 28 percent due to the decline in sales caused by the nationwide lockdown. Maruti Suzuki had closed down operations for a record 57 days.
Maruti Suzuki opening their production units came on the heels of other automotive manufacturers like Hyundai, Toyota, Nissan opening their production units. We can expect deliveries of vehicles to commence in the coming days to the customers. Maruti Suzuki will be strictly adhering to the government guidelines in relation to working in the current environment.