Mumbai: Mahindra & Mahindra Ltd-owned Classic Legends Pvt Ltd, the makers of Jawa motorcycles, said on Monday that the bikemaker has shut down the production at its Pithampur (Madhya Pradesh) plant responding to the supply chain disruptions as Covid-19 crisis accelerates in India.

Admitting for the first time, the manufacturer of classic motorcycles said that its production plans are hampered by the shortage of parts first caused by the supply chain disruptions in China in February, followed by the block closures observed by the suppliers in India, as part of the government advisory.

“Not only production, but the supply chain is also hampered as ports continue to be jammed," the company said in a statement released on Monday late evening.

The company said that it’s dependency on the parts procured from China was indirect as some tier 2 suppliers sourced parts such as nikasil coating, LCV panel for instrument cluster among others from there.

Meanwhile, in India, it said, “component suppliers across the spectrum are in various stages of closure, which has impacted the production schedules and therefore deliveries as well".

According to the ministry of health and family welfare, total number of confirmed Covid-19 cases on Monday at 8:15pm stood at 468. The pandemic has caused nine casualties in India so far.

Classic Legends has already been grappling with long wait list and issues around timely delivery of Jawa bikes. It said that there was negligible inventory of the components sourced from suppliers as parts were used to assemble motorcycles as soon as they arrived.

“Consequently, supply disruptions due to covid-19 has hit Classic Legends especially hard," it said in a formal note.

The company said that the deliveries of Jawa and Forty Two models for February and March have been affected and would impact the same in April as well.

“Classic Legends regrets to announce Perak deliveries will not begin on the April 2 as indicated earlier due to the supply disruptions stated above. We shall provide updated delivery timelines for all models once clarity emerges," it said updating about its third model.

The company said that it expects the Pithampur plant to roll out up to 10,000 bikes per month once the situation normalizes.

Meanwhile, Bajaj Auto Ltd announced closure of all activities at its corporate office and all production units as per the government advisory, which notifies lockdown in the entire state of Maharashtra with immediate effect till March 31.

“Our corporate office and factory at Chakan as well as other factories have ceased production in line with the local instructions. Bare minimum manning will be maintained for essential services," said Rakesh Sharma, executive director, Bajaj Auto Ltd.

Earlier, Royal Enfield, a division of Eicher Motor Ltd, too suspended all operations globally starting Monday, March 23 to March 31.

The closure will be observed across Royal Enfield’s manufacturing units in Tamil Nadu (Tiruvottiyur, Oragadam and Vallam Vadagal), the technical centers in Chennai and at Bruntingthorpe, Leicestershire, UK, all corporate offices and the company owned dealerships in India.

Royal Enfield said that it has issued advisories to all its dealerships in India to shut down for the same time period following the guidelines issued by the local authorities.

“During this time period, company employees will continue to work from home, and there will be no salary deduction for any permanent or temporary employees or workforce, and no reduction of workforce," the company said in a regulatory filing.

Royal Enfield claims to have liquidated its entire BS-IV inventory across dealership channels.

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