Indian car manufacturer, Maruti Suzuki, will stop production at its plants in the Indian state of Haryana from May 1-9, while Suzuki Motors Gujarat will halt work too in order to divert the oxygen used at these units towards medical use. A company statement declared that it uses a small amount of oxygen in its factories while larger quantities are used by the manufacturers of auto components.
India is reeling under shortage of oxygen in hospitals where COVID-19 patients are being treated. Most major industries have diverted oxygen used for manufacturing purposes to medical needs.
Maruti Suzuki has advanced its date for scheduled nine-day maintenance to May 1 — which usually takes place in June. Maruti has two plants in Haryana — one each in Gurgaon and Manesar — with a combined production capacity of 1.55mn units. Suzuki Motor Gujarat has an annual capacity of 250,000 units.
Maruti Suzuki’s net sales fell by 7pc in FY21 owing to a drop in sales volumes and higher commodity prices but the company reaffirmed that it is going to continue to work at full production to meet the healthy demand. Semiconductor shortage also continues to hinder supply, the company stated.
The company believes that resurgence of COVID-19 will only strengthen demand for personal vehicles, as more and more people will decide to reject public transport for safety reasons.