In the auto industry, working capital needs of dealers, manufacturers and ancillary companies are slated to increase given the higher tax rates on some of the raw materials in the GST era. Photo: Bloomberg (Bloomberg)
In the auto industry, working capital needs of dealers, manufacturers and ancillary companies are slated to increase given the higher tax rates on some of the raw materials in the GST era. Photo: Bloomberg (Bloomberg)

Coronavirus impact: Siam, Acma ask members to close plants, OEMs follow suit

  • Toyota Kirloskar Motor Pvt Ltd and Suzuki Motorcycle India Pvt Ltd announced closures of their respective plants
  • Suzuki Motorcycle said it has suspended production at its manufacturing plant at Kherki Dhaula, Gurgaon until further notice

MUMBAI :


Mumbai: Representing bodies of the vehicle manufacturers Society of Indian Automobile Manufacturers (Siam) and the auto parts suppliers Automotive Component Manufacturing Association of India (Acma) have requested their members to close down production operations across their respective plants as a preventive measure to contain the fast spreading covid-19 infection.

“With a view to the deteriorating situation arising out of COVID-19, SIAM and ACMA have both requested their Members in OEMs and Auto Component Industry to consider plant shut down for a limited period to overcome the critical period so that workers are not exposed to the virus," said Rajan Wadhera, president, Siam.

A number automakers including country's largest four-wheeler manufacturer Maruti Suzuki India Ltd, Mahindra & Mahindra Ltd (M&M) and top two-wheeler players Hero MotoCorp Ltd and Honda Motorcycle & Scooter India Pvt Ltd (HMSI) on Sunday announced they would be closing down their respective production units.

Late on Sunday evening, even Toyota Kirloskar Motor Pvt Ltd and Suzuki Motorcycle India Pvt Ltd announced closures of their respective plants.

"In view of the orders pronounced by the Government of Karnataka for all labour intensive industries to work at 50% of their strength on alternate days. Keeping the safety of employees as the top priority, TKM has voluntarily decided to temporarily halt production in its plant in Bidadi, Karnataka till further announcement" Toyota said in an statement.

The manufacturer of Innova and Fortuner cars said that it has also expanded work from home for all its employees across it's regional strategic business units in Delhi, Mumbai, Kolkata and Bangalore.

Meanwhile, Suzuki Motorcycle said it has suspended production at its manufacturing plant at Kherki Dhaula, Gurgaon until further notice.

"This is in view of the precautionary measures taken in the wake of the COVID-19 pandemic and in line with the Haryana Government directives in this regard," the two-wheeler maker said.

Close
×
My Reads Logout