MG Motor, the maker of Hector SUV, has resolved to shut its Gujarat plant for a week to support split the chain of Covid-19 infections, mirroring a very similar transfer by Hero MotoCorp as the second wave of the illness sweeps throughout the region.
In its missive to vehicle areas makers on Monday, the enterprise stated it will be shutting its Halol plant from April 29 to May well five, individuals in the know informed ET.
Rajeev Chaba, president of MG Motor India, verified the improvement.
The decision follows the government’s appeal to split the chain of infections and to consolidate uncooked materials in the wake of scarcity of clinical oxygen and manpower absenteeism.
The enterprise has, however, asked for its suppliers to create their stock to help output when it resumes.
There was previously a scarcity of significant areas like chipsets, and now the disruption in output in Maharashtra, as properly as the nationwide funds area (NCR), has exacerbated the offer chain concern further more. MG Motor India’s prepared car or truck output for April is probably to be strike by a minimum of twenty-thirty%, which may possibly get aggravated in May well.
Toyota Kirloskar, too, has shut its factory for numerous months. Even though the enterprise has stated it is for servicing, the soaring selection of Covid-19 situations and the effect of offer chain difficulties have played a element in triggering the shutdown at Toyota’s factory in April and May well, stated individuals in the know.
MG Motor India marketed more than 28,000 cars in 2020 with a current market share of one.two%. The enterprise experienced ideas of providing more than 50,000 cars in 2021.
The target may possibly be challenging to reach, provided that output was impacted in April due to unavailability of areas and a sustained scarcity may well have compelled the enterprise to resort to a plant shut down.
MG Motor, which has previously invested Rs three,000 crore in India, has lined up an additional Rs one,500 crore expenditure to enter the country’s quickly-rising, mid-dimensions SUV section and launch a item quite possibly forward of the festive season.