HMSI, Yamaha calibrating operating processes to re-start production after lockdown ends

Leading two-wheeler makers Honda Motorcycle and Scooter India (HMSI) and India Yamaha Motor are hopeful of resuming manufacturing operations at their respective plants after the lockdown is lifted amid supply chain and workforce related challenges.

While HMSI has sought permission to open its plants, Yamaha is also keen to start production in compliance with new protocols set by the government.

HMSI Director Sales and Marketing Yadvinder Singh Guleria told PTI that the company has applied for permissions from respective state governments to start production at its plants.

"At the same time, we are in the process of recalibrating our standard operating procedures (SOPs) and preparations are on to meet 100 per cent government guidelines for safety of employees and stakeholders before resuming actual production," he added.

HMSI has four plants located at Manesar (Haryana), Tapukara (Rajasthan), Narsapura (Karnataka) and Vithalapur (Gujarat), with total installed production capacity at 64 lakh units per annum.

Although the companies are preparing to restart operations, it may take them some time to actually kickstart the process with many of the component suppliers still shut.

Besides, it may take some time before the workers return after having left for their native places.

India Yamaha Motor Senior Vice President (Manufacturing) Sanjiv Paul said the company's foremost priority is to ensure safety of its employees.

The company is exploring every possibility to restart its manufacturing operations in compliance with the SOPs issued by the government for disinfection of facilities and maintenance of social distancing guidelines at all factory locations.

"Another important aspect is to have a smooth supply chain in place after the lockdown so that our manufacturing operations can be run without any disruptions," Paul noted.

Many suppliers are in containment zones, so the company needs to evaluate their situation, he added.

Availability of manpower with the suppliers could be another challenge as many workers might have returned to their native places, Paul said.

He added that despite government allowing movement of trucks for goods and carriage, the drivers' availability is still limited.

"As it is extremely crucial to have uninterrupted supply of parts from suppliers in order to sustain a seamless operation, we may require some time to restore every quarter of the supply chain to normalcy," Paul noted.

He added that the company may also have to carefully evaluate the market scenario after May 3.

"We must rightly evaluate the market sentiment after the lockdown from a demand point of view, especially in terms of customer footfalls to the dealerships and retail propensity. Our estimate is gradual rise in demand over the couple of months, so the inventory at the dealerships must be carefully planned," Paul noted.

The company is committed to surge ahead on the long road of recovery and will consider every aspect before resuming full capacity, he added.

Already, major carmakers like Maruti Suzuki, Toyota and Honda have stated that availability of components is a prerequisite to re-start operations.