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Maruti Suzuki and Hyundai Motors India plan to resume Production from May

CIO Insider Team

Maruti Suzuki Pvt Ltd and Hyundai Motors India, two of India’s leading automobile manufacturers that together constitute nearly 70 percent of the country’s domestic passenger vehicle market are all set to resume production from May onwards. After the COVID-19 induced lockdown had forced the country’s automakers to suspend operations since the last week of March, dealing a lethal blow to the economy in the process.

Maruti and Hyundai Motors will be following MG Motors India Ltd. that recently re-opened its factories at Gujarat. Depending on the government's permission, both Maruti and Hyundai

are likely to start their operations with just 20 to 30 percent of the total manufacturing capacity and to slowly scale-up production with the subsequent easing of the lockdown.

Since Maruti and Hyundai together control more than 70 percent of the nations’ automobile production it is a critical element of the Indian automobile industry.

Maruti has plans to manufacture 45,000 vehicles in May, which could ramp up to 65,000 by June if things go as planned. This would still be less than half of the 150,000 units Maruti produces each month on average. Hyundai, on the other hand, has decided to start with just 12,000 to 13,000 units in May and only to increase the volume of production gradually. The South Korean automobile giant generally produces around 60,000 vehicles each month.

Maruti has chosen its Manesar factory in Haryana to restart production. Instead of the usual work carried out in three shifts, Maruti has decided to continue operations on a one-shift basis. On Monday Maruti received permission from the Haryana Government to start maintenance services from its Gurugram plant.

At present, there is very little demand in the automobile market, but there is always the possibility of a sudden spurt of demand as the situation turns to normal. In addition to that, both Maruti and Hyundai have got additional challenges pertaining to supply and demand that the current nationwide lockdown has brought up to the surface in this fight against the deadly Coronavirus pandemic.

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