Covid-19 lockdown: Labour, stockpile make carmakers delay production

Supply chain glitches and unavailability of labour also a deterrent

India’s top automakers have decided to not resume production even as some of their manufacturing units that met the location-specific guidelines laid down by the Ministry of Home Affairs (MHA) could have started production on Monday, said top executives at various firms.

They cited issues related to supply chain, labour availability, and a stockpile of models at the factories and dealerships as reasons. Cumulatively, automakers, including Maruti Suzuki India, Hyundai Motor India, Tata Motors, Honda Cars, and Volkswagen Cars, have an unsold stock of close to 212,300 cars. This is equivalent to one month’s sales in the domestic market.

RC Bhargava,