More than a week after states such as Uttarakhand, Gujarat and Kerala allowed automakers to resume manufacturing activity in phases in green zones, original equipment manufacturer (OEMs) have still not started the actual process of production of vehicles at any factory across the country.
The clincher, however, is that most OEMs don't expect the situation to significantly improve even after the lockdown is lifted on May 3.
Companies which do have permissions to open up factories with a limited manpower are currently engaged in formulating operating protocols in green zones, as each step needs to be validated by concerned district authorities, according to Rakesh Sharma, Executive Director, Bajaj Auto.
CNBC-TV18 had earlier reported Maruti Suzuki's plans to restart production activity only after the lockdown is lifted.
OEMs are currently only starting up the system - they are getting their vendors in order and conducting maintenance work at their facilities, with actual, meaningful production still being a ways off.
Ramping up production activities is also a challenge as far as dealerships are shut. This is also exacerbated by the fact that only a small fraction of the workforce is permitted to come to factories.
For passenger vehicle makers and two-wheeler manufacturers, obtaining components from the Delhi-NCR and Pune clusters will be a major hurdle if the lockdown extends further, according to a report by CRISIL. Tractor and commercial vehicle makers will face similar hurdles sourcing components from Tamil Nadu.
PV and CV maker Mahindra & Mahindra will not be able to start production at most of its facilities as they fall under containment zones, CNBC-TV18 reported earlier.
The resumption of operations will be function of availability of supplies, according to M&M. Ashok Leyland, another automaker with permission to operate in Uttarakhand has said that it is currently evaluating how production activities can be resumed.
Eicher Motors, speaking to CNBC-TV18 said, "Unless we start getting parts from suppliers, plants will not be able to operate beyond 10-15 days... we will slowly start production since we are allowed only 25-30 percent workmen. We dont have facilities to house workers inside the plants."
First Published: Apr 28, 2020 1:28 PM IST
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