Hero MotoCorp also extends production shutdown as Covid surges
"Hero MotoCorp, the world's largest two-wheeler manufacturer, has decided to extend its April shutdown across all of its facilities"
Hero MotoCorp, the world's largest two-wheeler manufacturer, has decided to extend its April shutdown across all of its facilities. The decision comes as the country continues to grapple with the recent surge in Covid-19 cases.
According to a statement issued by Hero MotoCorp on Sunday, the shutdown also affects the company's Global Parts Center (GPC) in Neemrana and the Centre of Innovation and Technology (CIT) in Jaipur.
The two-wheeler manufacturer announced a phased shutdown of its facilities from April 22 to May 1, which was later extended to May 9.
The shutdown halted operations at Hero MotoCorp's six manufacturing plants in Haryana (Dharuhera and Gurugram), Andhra Pradesh (Chittoor), Uttarakhand (Hridwar), Rajasthan (Neemrana), and Gujarat (Halol).
"The company 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," said Hero MotoCorp in a statement.
The decision to close facilities across the country is likely to have an impact on Hero MotoCorp's output for the month. It is expected that low demand this month has forced many manufacturers to reduce production.
The Hero MotoCorp facilities affected by the shutdown have a total annual production capacity of 90 lakh units.
Hero MotoCorp is the second vehicle manufacturer to announce an extension of their ongoing shutdown in the last few days. Earlier this weekend, India's largest automaker, Maruti Suzuki, announced that it will extend its 'planned maintenance' across Haryana facilities until May 16.
Maruti also fears that the ongoing Covid-19 restrictions in the country will reduce demand for its vehicles. Given the current Covid-19 situation in the country, it may also consider reducing production. According to Maruti's top management, the current issue is one of sales volume. According to the report, several dealers have been forced to close their stores due to a partial lockdown and curfew in several states.
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