“It will take some time before it can start production as the TKAP’s human resources are scattered all over Karnataka,” ,” said Viswanathan.
Some of the other auto factories that have got the permission to resume production include auto manufacturing units in Pantnagar in Uttarakhand. It includes units of Bajaj Auto
and Tata Motors
among others. A Bajaj executive confirmed it has got the requisite approvals for the plant. However, the company was interested in completing its export orders which cannot happen unless production from Chakan, Maharashtra.
To be sure, none of the factories in the Chakan belt have been allowed to start production.In chakan no opening has happened at all. Even for other auto hubs including, Rajangaon and Talagaon factory opening hasn’t been allowed due to rising number of Covid-19 cases in Pune. In Tamil Nadu, the State government has taken a decision not to allow any factories to open till May 3.
Referring to Toyota Kirloskar
Motors, Viswanathan said Toyota is no hurry to start production. “All the dealers are shut. Unless you can sell, what’s the point in producing and stocking?” Even our supplier partners are struggling to get the human resources in place. It’s a long haul on the road to recovery. Even after the lockdown is lifted on May 3, it will still take industry another 15 days to start production. It will take Toyota almost 20 days to a month to sell the stock of BS-VI
models — close to 8000 units will take us a month to get rid of the stock, he said.
“To the set wheel rolling, will be a daunting task for automotive industry,” said Puneet Gupta, associate director at IHS Markit. “No customers would be thinking of buying a car. So there are demand challenges and on the other side it’s a challenge to activate the entire supply chain.
Car manufacturing is too complex and it will be difficult to run these companies until the entire lockdown is over. Also running the factory with conditions laid down by government will further be too taxing for Car manufacturers/suppliers, added Gupta.