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The District Administration of Gurugram has granted permission to the country's largest four-wheel manufacturer, Maruti Suzuki India Limited, to re-start operations at its Manesar facility at Haryana, with the lock down still in effect.
According to ET Auto, the Administration also said that production could start on a single shift basis, meaning Maruti will operate at a production rate of 1,50,000 vehicles a year — one-third of their annual capacity of 3,00,000 units a year.
Maruti however, hasn't yet take a final decision about re-starting operations. RC Bhargava, the Chairman at Maruti Suzuki India Limited said starting the plant was dependent on availability of components and the readiness of its vendors. The company said they were just days away from going live.
Prime Minister Narendra Modi had earlier stated that lock down rules would be partially relaxed starting 20 April. According to the guidelines set by the Ministry of Home Affairs, industrial establishments outside on Municipal Corporation limits would be allowed to resume operations.
The company's Manesar facility falls outside of these limits, while its Gurugram facility falls within Municipal Corporation limits. Maruti wants to re-start is Gurugram plant as soon as possible because it feels that there will be sudden increase in demand for automobiles.
Mr RC Bhargava said, "If buyers become apprehensive of sharing space with another passenger, it will increase demand for vehicles. It's not the same India anymore. People's attitudes towards buying will change."
Maruti Suzuki had announced a suspension of operations at their Manesar facility on 23 March and had said that the factory would stay closed ‘until further notice'. It has also announced that it was ready to suspend activity at its Research & Development Facility at Rohtak if required.
In related news, the company had registered a production decline of 32.05 percent during the month of March and had assembled only 92,540 units as compared to the 1,36,201 units it manufactured during the same period last year. To know more, click here.
Thoughts About Maruti Suzuki Getting Permission To Re-Start Manesar Facility
This is great news for the economy. Industries in the country need to re-start before things take a turn for the worse. We expect the government to allow other manufacturers whose factories are outside of Municipal Corporation limits to re-start operations.