Auto firms to halt production for up to 15 days amid raging second wave

For some it is part of annual maintenance protocol, for others it's a forced move, done for safety of those employed at the factory

Wheels at manufacturing plants of several automobile companies in the country are set to pause for up to 15 days from May 1 as Covid-19 cases surge. While some are calling the shutdown their annual maintenance protocol, others are citing safety of those employed in factories while halting operations.  The production halt comes at a time when close to a fourth of the retail outlets of auto companies remain shut. The temporary closure, would therefore, help companies to prepare for the upcycle when the pandemic lets up, said an analyst.
 
The move is also prompted by scattered lockdowns across states and cities. Honda Motorcycle and Scooter India is an example. “In view of the current severe situation on account of the second wave of Covid-19 and subsequent multiple lockdowns across various cities in the country, HMSI has announced a temporary halt of its production operations across all four plants effective May 1,’’ the second largest two wheeler maker by sales said on Thursday.

 
Honda said it would utilise the 15-day temporary production halt for advancing its annual plant maintenance activities. Depending upon the evolving Covid situation and the market recovery, Honda would review its production plan in the subsequent months.
 

Two wheeler market leader Hero MotoCorp’s plants have been closed since 22 April and would resume operation on May 1, the company said earlier this week.
 
Starting April 29, MG Motor India has also closed its plant for seven days, Rajeev Chaba —president and managing director at the firm —announced on the microblogging site Twitter on Tuesday. “We have decided to close our plant in Halol@ Vadodra for seven days to break the chain of Covid. And our employees are committing to stay safe and take care of community in these harsh times. May there be more force with us,” wrote Chaba.

 
Manufacturing entities in Maharashtra have been operating at half the capacity since the state announced partial curbs to check the spread of the virus. A spokesperson at Tata Motors said all of the company's plants and offices would remain closed from May 1 to 3. He did not cite any reason. 
 
Ruzbeh Irani, HR and communications president at Mahindra Group, said the company was doing its bit to deal with the shortage of oxygen. He didn’t comment on whether Mahindra has plans to halt production. The well-being and safety of its associates and communities was its biggest priority, said Irani, adding that the company had taken numerous steps to facilitate oxygen supply for medical needs.

 
An official at Volkswagen Group said the company was continuing its production according to the Maharashtra government’s guidelines to meet export commitments.  “We or our suppliers do not use any oxygen in production,” he said.  Rakesh Sharma, executive director at Bajaj Auto, also said the firm would continue its manufacturing operations to meet the export needs.
 
On Wednesday, car market leader Maruti Suzuki India said it was advancing its annual maintenance shutdown by a month in view of the current situation. The move, it said, would help in freeing up oxygen for medical needs. Maruti’s suppliers use oxygen for heat treatment of casting, forging and sheet metal parts.

 
Several other firms including Toyota Kirloskar, Ford Motor (Chennai),  BMW,  Hyundai Motor India, Kia India have either already shuttered their plants or will be doing so from May 1. The shutdowns however, were scheduled and are not related to the current situation, said officials at these firms. This is part of the annual routine,” said Naveen Soni, senior vice president – sales and service at Toyota Kirloskar. Toyota closed its plants on April 23 and would resume operations on May 14, he said.