Renault India Pvt Ltd
production shutdown
Nissan Motor India Pvt Ltd
India Yamaha Motor Pvt Ltd
Ford India Private Limited
Chennai Rains
Chennai flood
Chennai Rains: Automakers forced to shut down production; face Rs 180 crore loss
The factories of Ford, Renault-Nissan, Daimler India and Yamaha have remained shut for the second straight day leading to a cumulativeKetan Thakkar | ET Bureau | November 17, 2015, 20:54 IST
Chennai and other parts of Tamil Nadu received heavy rain.
MUMBAI: Leading automobile companies in Chennai, one of India's largest automotive hubs were badly crippled by the heavy rains, said to be the highest in a decade, which forced them to halt production and despatches for the second straight day.
The factories of Ford, Renault-Nissan, Daimler India and Yamaha have remained shut for the second straight day leading to a cumulative production loss of Rs 150-180 crore, and an additional few hundred crore at the vendors end.
ET learns, due to the two days of production shut down approximately 1200 Ford cars were not produced. At Renault-Nissan plant in Oragadam, another 1800 cars were affected due to the shut down and sources said there are a few hundred cars on the road for delivery, which are now stranded due to the torrential downpour.
Both Ford and Renault Nissan have indicated that they are likely to resume production on Wednesday. German truck maker Daimler had shut the plant on Monday and Tuesday has decided to keep its plant open on this Saturday, in order to make up for lost production.
While Hyundai Motor India did not see a major production loss, however, the stranded trucks due to the roads getting flooded forced them to halt shipments. This will lead to an increase in waiting period of in-demand models Creta and Elite i20, by 7-10 days.
While the spokesperson for Renault-Nissan India plant claimed that there will be little or no impact on vehicle or part deliveries to the customers, the French partner Renault's small car Kwid, has a significant waiting period, may see a further delay in deliveries.
Two-wheelers including Royal Enfield lost approximately 1,500 units of production in a day and Yamaha also lost production of thousands of vehicles in the last two days, as the workers were left stranded at home due to flooded roads making it impossible for them to travel to work.
A senior executive at an automotive company said, more than the production lost, which can be recouped in the coming weeks, it is the allied infrastructure of roads and ports tied into the supply chain issues which are a bigger challenge.
Rakesh Srivastava, Sr VP, sales and marketing at Hyundai Motor India says, the extent of monsoon is unprecedented and it has created huge logistical challenge for both domestic and export operation. "So far the production is not impacted, it is normal, however there are logistical challenges. With the support of supply chain partners, teams are working continuously to tide over the situation and ensure that the vehicles are delivered in time. But still due to incessant rains, the waiting period for models may get impacted by a week to 10 days," added Srivastava.
Ford India spokesperson confirmed that the production at the plant has been halted but the company continues to monitor the situation closely to return to normalcy.
Renault Nissan spokesperson added that the employee safety was the company's primary concern and the incessant rains had made the commute very difficult, hence the company decided to close the plant at the start of the week. Renault Nissan expects to resume production operations before the weekend as the floods subside and the weather improves.
The heavy rains, which started on Saturday night has already submerged some key parts in and around Chennai which includes Cuddalore, Kancheepuram, Tiruvallur and Villupuram. The shower which has claimed over 79 lives and forced authorities to evacuate 10,000 people from low lying areas.
READ ALSO: Chennai floods: Ola supplies boats for ferrying stranded citizens
Tags : Industry, Yamaha, Renault India Pvt Ltd, Renault, production shutdown, Nissan Motor India Pvt Ltd, Nissan, India Yamaha Motor Pvt Ltd, Hyundai Motor India Limited, Hyundai, Ford India Private Limited, Ford India, Daimler AG, Daimler, Chennai Rains, Chennai flood
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