Maruti Suzuki output to start based on access to supply of parts

New Delhi: Resumption of production at Maruti Suzuki will depend on adequate access to supplies from vendors, the chairman of the country’s largest carmaker said. While availability of labour is not an issue for the company, the supply of components has to normalise to start production in a sustainable manner, RC Bhargava said. “There is no point opening up unless you can continue production in a sustainable manner.”

Maruti Suzuki is assessing the situation and will arrive at a final decision on commencing production in the next couple of days. It has more than 350 major suppliers and over 1,000 other vendors spread across the country.

Bhargava said: “We are finding out from all our vendors what exactly is their situation.”

While the central government issued guidelines to restart economic activity partially, vehicle and auto component makers are waiting for directives from local administrations to resume operations. Korean automaker Hyundai, for instance, is awaiting directions from the Tamil Nadu government regarding resumption of operations at its factory near Chennai.

Hyundai Motor India director of production GS Mani told ET: “The Tamil Nadu government is working on norms, on the basis of which we will be taking a decision. We are also looking into the supply situation and at our distribution network.” Around 70% of Hyundai’s supply chain partners in India operate out of the industrial belt near Chennai.

Source Article

Lois C. Ferrara

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