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The Indian auto industry is slowly working its way to restart operations in India, after being shut down for over 40 days. Automobile companies are currently preparing to resume production in accordance with the government's guidelines for ensuring all safety and social distancing norms are followed.
However, for vehicle OEMs to restart production, they need the support of their respective component manufacturers. The auto component manufacturers in India, especially those in the green zone are now planning to resume operations soon. Other manufacturers in the red zone have been banned from resuming work, while those in the orange zones are currently awaiting approval from local authorities.
The auto component manufacturers in the green zones will be following all the safety guidelines and the social distancing norms. The company, similar to auto brands will be working in limited numbers and under reduced production capacity.
Vinnie Mehta, Director General, Automotive Component Manufacturers Association (ACMA) told carandbike,
"The auto components sector is in the process of taking permissions to resume operations, in certain cases it is taking a bit of time. Those with permission are engaged in the maintenance of their machines & equipment and also preparing to put in place safety procedures/protocols to receive their employees."
"Resumption of production will depend on the schedules received from the customers. We do not expect significant capacity utilisation in the short term as the customer demand at this juncture is rather muted."
Vehicle manufacturers are planning on working at 20 - 30 per cent production capacity for the remainder of the month. Companies like Maruti Suzuki, Hyundai and a few others have already received a large number of bookings since the end of the second lockdown period.
Reports also state that the production will also depend on the dealerships operating at the moment. Due to the COVID-19 crisis, there are many dealerships which come in the red zone and will remain shut for an extended period. However, even after the end of the lockdown, footfalls to vehicle dealerships are said to reduce significantly.
Keeping this in mind, many manufacturers have launched online retail platforms. These online platforms allow customers to get the entire experience of purchasing their vehicles virtually from the comfort of their homes. Brands like Mahindra, Hyundai, Mercedes-Benz, BMW and many more have introduced such platforms.
Thoughts About Auto Component Manufacturers Resuming Operations
Auto component manufacturers are the back-bone of vehicle production. Without the components, required vehicle production cannot operate. Hence it is important for component suppliers to resume operations quickly.