Hyundai Motors India Limited has announced suspension of three shifts, one last night (December 2) and two for today following heavy rains and floods causing havoc across Chennai. While these three shifts were called off, the company announced that further operations will depend on the situation. Production at the company’s engine and assembly plants were suspended in view of the safety of employees as heavy rains and severe flooding have made most roads practically impassable. The shut down may lead to increased waiting periods of in-demand models like Hyundai Creta and Elite i20.
Besides Hyundai Motors, Ford India has also announced temporary suspension of operations at its Chennai plant. The company will be assessing the flood situation and return to normal functioning once flooding abates. This call was taken in view of the safety of employees coming to and leaving the premises.
Renault India has also stalled production operations at its Oragadam plant for a day and is keeping a close eye on the situation. The company will only resume operations once weather improves. The halt would be a set back for the company which is doing everything possible to meet the surging demand for its highly successful Kwid.
The temporary production halt due to the weather is expected to extend the waiting period of various in-demand vehicles.Cumulative loss due to production halt is estimated to be around INR 150-180 crores. Approximately 1,200 Ford cars will not be produced due to the shutdown while at the Renault-Nissan plant in Oragadam, production of 1,800 cars will be affected. Some cars are also on the road for delivery which are now stranded due to a continuous downpour, the worst that Chennai has seen in over 100 years.
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The lashing rains and severe flood situation that has submerged Chennai and parts of Cuddalore, Kancheepuram, Tiruvallur and Vilupuram has claimed over 200 lives so far. Around 10,000 people have been reportedly evacuated from low lying areas. Authorities report that though the situation may improve over the next 48 hours, the rains will continue to lash Chennai for one more week.
Via – Economictimes.Indiatimes.com
This post was last modified on November 15, 2019 12:14 pm