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Makers of auto, ancillaries halt production due to COVID-19, stock prices crash

ANI 

The coronavirus outbreak (COVID-19) has hit Indian automobile and ancillary industry with several major players announcing a lockdown of their plants till March 31.

At the same time, India Ratings and Research (Ind-Ra) said the auto sector will face pressure from not only supply side but also demand side and exports if the spread of COVID-19 persists for more than two months -- both domestically and globally.

At 12 noon on National Stock Exchange (NSE), the Nifty auto was 11.76 per cent down to 4,739.

Maruti Suzuki -- the country's largest car manufacturer -- said it will shut production and office operations at its facilities in Gurugram and Manesar (Haryana) with immediate effect till further notice. The research and development centre at Rohtak will also remain closed.

Hero MotoCorp -- the world's largest manufacturer of motorcycles and scooters -- decided to halt operations at all its global manufacturing facilities including in India, Colombia and Bangladesh besides its global parts centre at Neemrana with immediate effect until March 31.

Tata Motors said it is closely monitoring the situation and may close the plants if required. The auto company is also rapidly scaling down activity at its car factory in Maharashtra and is preparing to close it if concerns about coronavirus deepen, the company said.

Bharat Forge Limited decided to suspend operations at all its offices and manufacturing locations from March 23 to 31 to ensure employee safety and contain the spread of Covid-19.

TVS Motor said it will shut operations at all its manufacturing facilities and offices for two days effective March 23.

Eicher Motors said that Royal Enfield will suspend all operations globally till March 31. This includes company offices and company-owned dealerships. Employees will continue to work from home and there will be no salary deduction. There will also be no reduction of any workforce, it added.

Escorts closed down offices and plants in Faridabad till March 31. "As a responsible corporate entity, we also believe that health and safety of all our employees and their families is of utmost concern and priority."

SML Isuzu also suspended its production at its manufacturing plant in Punjab till March 31.

Lumax Industries has decided to temporarily shut all manufacturing facilities across India till further notice. The duration of this shutdown will depend upon further directions from government authorities.

Sona Koyo Steering Systems Ltd has shut its offices and operations at its facilities in Gurugram, Dharuhera and Bawal with immediate effect till further notice.

GNA Axles has also closed all manufacturing facilities in Punjab including all offices till March 31.

Minda Industries suspended manufacturing operations in North India, Rajasthan and Maharashtra till further notice. Production volumes in Spain, Mexico and ASEAN have been significantly impacted, it said.

Honda Cars India informed its associates and suppliers that production operations at both its manufacturing plants in Greater Noida and Tapukara (Rajasthan) will be temporarily suspended from March 23 to 31.

Honda Motorcycle and Scooter India also announced a temporary shutdown of all its four plants.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 23 2020. 12:08 IST
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