Automaker Maruti Suzuki plans to cut shifts at its Manesar and Gurugram plants amid the rising COVID-19 cases in India. Despite the reduction in operations, the automaker believes it would be able to cater to the current demand, according to media reports.
With lockdowns in many key states of the country, economic activities have started to gradually decline. With ICRA even cutting the GDP forecast by 0.5pc amid the re-emergence of the pandemic, spending capacity of people is expected to fall. Auto sales could also take a hit. Dealerships also remain closed with many local governments allowing merely those shops selling essentials to operate.
Globally, auto production has already been impacted due to a shortage of chips and semi-conductors. Tata JLR has become the latest auto company to shut production at its UK plants due to the shortage.