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Hero MotoCorp has decided to extend the ongoing suspension of its manufacturing operations in the country. The company had announced that all the production operations in the country will be halted temporarily till May 9, 2021.
However, due to the continued rise of Covid-19 cases in the country, Hero MotoCorp has decided to extend the deadline to May 16, 2021. Hero MotoCorp's (GPC) Global Parts Center in Neemrana and the (CIT) Centre of Innovation and Technology in Jaipur will also be closed during this period.
The company further stated that "It is continuously monitoring the situation and is ready with its business continuity plans to be able to quickly resume and scale up operations as and when the situation improves."
All Hero corporate offices will continue to operate with employees working from home. The company will be allowing very limited staff to offices on a rotation basis for the continuity of essential services.
During the announcement of the suspension of operation for the first time last month, the company stated that it will utilize these non-working days for maintenance across all of its plants in the country.
It also stated initially that the shutdown will not impact the company's ability to meet the demand. The loss in production will be compensated during the remainder of the quarter. However, due to the extension after the initial announcement, we expect that the impact could be slightly more.
The operations across its various facilities in India was first announced between April 22, and May 1, 2021. However, the deadline was extended to May 9 due to the continued threat from the spread of Coronavirus. Now the company has decided to extend the deadline for the second time.
Thoughts About Hero MotoCorp Extending Suspension Of Operations Over Rising Cases In The Country
The second wave of Covid-19 virus spread in the country is increasing at a rapid pace. As a result, automakers have decided to curb the spread by announcing non-prodcution days in the country. With the halt in manufacturing operations for a long time, it could impact the supply to the current demand.