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Maruti Suzuki suppliers across the country will soon be increasing their production rates. The increased production will allow them to build up sufficient inventory in case of any future production disruption.
According to LiveMint, the order comes in the form of a letter directly from Osamu Suzuki, Chairman of Suzuki Motor Corporation — the Japanese parent company of Maruti Suzuki India Ltd.
The letter sent by Mr Suzuki to Maruti vendors across India is the first in over a decade. The letter was addressed to all suppliers and vendors of the carmaker in the country. It was written on the 17th of June and expresses concerns about the current pandemic situation in India. The letter urges part suppliers and other vendors of Maruti Suzuki to boost production and help build a sizable inventory.
The plan to boost production comes amidst the threat of a second wave of the COVID-19 pandemic in the country, which could again lead to lockdowns. This will further cause disruption in production numbers as well.
Tamil Nadu has recently announced a 12-day extension in lockdown across the state. Maruti Suzuki is expected to face a shortage of certain parts as some of its suppliers are located in Tamil Nadu. This could lead to a disruption in production operations for those dealers.
Maruti Suzuki is an integral part of the Japanese company. The company accounts for 60% of the total profits of Suzuki Motors and hence all necessary measures are being taken to ensure the company is prepared if the situation worsens.
Maruti Suzuki resumed operations from the 12th of May at its Manesar plant. The Gurugram facility and the Suzuki Motor Gujarat factories opened up slightly later, as per the government regulations.
Maruti Suzuki registered over 86 per cent drop in sales in the month of May 2020. The company recorded just 18,539 units of sales, compared to over 1.34 lakh units sold in May 2019.
Thoughts About Maruti Suzuki Suppliers Asked To Boost Production
The COVID-19 pandemic in India is still rising at an alarming rate. Although the lockdown period is over, many state governments are still extending lockdown in various areas. Suzuki is taking precautionary measures so as to allow them to continue meeting the sales demand, even if their production is slightly disrupted.