Hyundai Motor India Ltd announced that prices of its vehicles, across categories, will be increased from January, 2020. (Reuters)
Hyundai Motor India Ltd announced that prices of its vehicles, across categories, will be increased from January, 2020. (Reuters)

Hyundai to suspend production at Chennai facility as Covid – 19 cases increase in India

  • The company though did not specify the date on which it will resume operations and will depend on government advisories for further clarity on the situation
  • Siam, a lobby group of automobile manufacturers also advised the auto makers and their component manufacturers to stop production

Hyundai Motor India Ltd – country’s second largest passenger vehicle manufacturer – on Sunday, announced its decision to shut down its Chennai based factory, for an indefinite period, starting from March 23, due to significant rise in Covid – 19 cases.

“Hyundai Motor India Ltd will be taking the preventive counter-measure of suspending its manufacturing operations at the Chennai facility from Monday, 23rd March 2020 till further notice to stop the spread of coronavirus (COVID-19) - a global pandemic. We will await further notifications from state government to resume plant operations," the company said in a press release on Sunday.

The company though did not specify the date on which it will resume operations and will depend on government advisories for further clarity on the situation.

As the number of persons infected with the novel Coronavirus rises significantly in India, leading automakers, across segments, have decided to shut down respective manufacturing capacities to protect their factory staff and comply with the state and central government’s efforts to ensure social distancing.

Society of India Automobile Manufacturers (Siam), a lobby group of automobile manufacturers also advised the auto makers and their component manufacturers to stop production, keeping in mind the safety of their employees.

Maruti Suzuki India Ltd – country’s largest vehicle manufacturer – on Sunday, announced its decision to stop manufacturing vehicles in the two factories located in Haryana, indefinitely. Work at the research and development centre in Rohtak will also be stopped from tomorrow.

Hero MotoCorp Ltd, country’s largest two wheeler manufacturer - also announced its decision to stop work in factories across the country, including its research and development facility in Jaipur till March 31. The manufacturing capacities in other nations like Colombia and Bangladesh will also remain closed.

With number of cases rising in the Pune region of Maharashtra, automakers like FCA India Pvt Ltd, Mahindra and Mahindra Ltd and Tata Motors Ltd, with manufacturing capacities in the vicinity, have also decided to stop production. According to senior executives of the major component manufacturing companies, other Original Equipment Manufacturers (OEMs) are also likely to follow suit in the coming days.

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