[TusharK]

According to a media report, the government of India could allow carmakers to resume production on a limited scale, even as the lockdown to contain the outbreak of the Covid-19 pandemic is extended.



In addition to automobiles, industries such as textiles and electronic manufacturing could also be allowed to operate during the lockdown. The report states that industries that have sanitation and social distancing norms in place could operate at 20-25% capacity. Also, the companies will have to provide single entry point for workers and transportation or should make arrangements for their stay at the factory.

These suggestions were reportedly made by the secretary of the Department for Promotion of Industry and Internal Trade in a letter addressed to the Ministry of Home Affairs.

Source

Link to Team-BHP News

[Leoshashi]

Maruti has installed these disinfecting tunnels in Manesar and Gurgaon plants:

https://www.youtube.com/watch?v=TZagrOOkcS4

https://www.youtube.com/watch?v=RAncC0fnMxE

[ashis89]

Just yesterday, I was thinking about the scenario post lockdown and few thoughts and queries came to my mind.

I was wondering what good will it be if the manufacturers continued but there wasn't any sale happening? There are reports that air-conditioned shops won't be allowed to operate, which rules out all the dealerships. Even if the dealerships operate, how would be the demand for cars if the whole economy is not back on its foot? What about the stocks lying at the yards, plants and dealers, including the old BS4 ones which they can sell partially?

On the other hand, factories(OEMs, vendors and suppliers) employ many contractual workers. Due to the lockdown, many of them have gone back home. Unless the lockdown is removed, they can't return and this could impact production.


After all this, I felt reopening factories for 'non-essential' and 'big ticket' goods might be unnecessary immediately after the lockdown. I could be wrong here. Please correct me if my assumptions are incorrect. Happy to hear alternate thoughts on this.

[Durango Dude]

Opening factories and adding to the already large stock pile of unsold vehicles is a rather thought less move. Once the Covid dust settles the first and foremost in people's minds wouldn't be cars, unless some miracle happens. People are taking pay cuts and you want to build cars!

[Shreyans_Jain]

This is a rather silly idea at a time when dealers are already straddled with unsold inventories. All businessmen have taken massive financial hits due to the shutdown. When things reopen, little by little, the priority is going to be damage control and stabilisation. Nobody is going to make big ticket purchases like cars or real estate or jewellery unless they absolutely have to for some time. All whims are deferred.

[volkman10]

Expect to start limited operations from April 15 if restrictions lifted; no lay-offs : Maruti Suzuki

We expect that our factories in Gurugram and Manesar will not be in the red zone because Gurugram is not completely red, there are parts of Gurugram which are red parts and we expect that it is most likely that we will be able to start limited operations from April 15

We have followed all the government instructions that nobody should be laid off, nobody should be not paid... We have paid all our employees during this lockdown period, there has been no lay-off of any kind

in the month of April, activities will start in a staggered manner and it is very unlikely for anyone to reach near capacity production in the next 1-2 months

India’s largest car maker is meanwhile witnessing an increasing number of queries online for its vehicles, Bhargava said, underscoring pent up demand for entry level or affordable hatchbacks in the domestic market.


Link

[Nithesh_M]

No amount of sprays will sanitize a large workplace like a factory 100%. This is simply manufacturers risking workers lives for little to no gain.

[The Rationalist]

These disinfecting tunnels are unscientific if it is meant for workers! Moreover it is harmful for human beings. Hope the next generation get scientific temper and don’t follow such stupidities.

Running factories is a good move if the idea is to keep the plant running at a small scale and few hundred workers will get wages.

[itwasntme]

Originally Posted by ashis89

I was wondering what good will it be if the manufacturers continued but there wasn't any sale happening? There are reports that air-conditioned shops won't be allowed to operate, which rules out all the dealerships. Even if the dealerships operate, how would be the demand for cars if the whole economy is not back on its foot? What about the stocks lying at the yards, plants and dealers, including the old BS4 ones which they can sell partially?

On the other hand, factories(OEMs, vendors and suppliers) employ many contractual workers. Due to the lockdown, many of them have gone back home. Unless the lockdown is removed, they can't return and this could impact production.

I cannot speak for other manufacturers but for example, Maruti has NO stocks of BS-VI Ciaz petrol in South India. Only way to get one is to order it (exact colour+variant combo), and only then will production start (or would have started in a non-COVID-19 utopia). I personally experienced this expecting to waltz in and choose my new Ciaz

My industry's (not automotive) retail outlets have already laid out detailed plans to bypass air-conditioning restrictions and cool them in different ways. For a determined dealer and a determined customer, lack of AC in a showroom is not going to be a limiting factor!

Again, for most mainstream manufacturers there are very very few BS-IV 4 wheelers left. Those that are, are already purchased by the dealer principals or other parties before 31 March or will fall into the 10% waiver.

Personally, I feel at least for entry & middle level vehicles there is pent-up demand waiting for showrooms to open. This is partly due to the fact that many people were on the fence waiting for BS-VI to commence. Couple that with the fact that most salaried folks have just got their bonuses.

Originally Posted by Durango Dude

Opening factories and adding to the already large stock pile of unsold vehicles is a rather thought less move. Once the Covid dust settles the first and foremost in people's minds wouldn't be cars, unless some miracle happens. People are taking pay cuts and you want to build cars!

Disagree, there is a latent demand in most entry & middle level vehicles. BS-VI launches are also exciting with new City, new Verna, new engines for Polo, Vento & Rapid, new Ciaz etc.

Originally Posted by Shreyans_Jain

This is a rather silly idea at a time when dealers are already straddled with unsold inventories. All businessmen have taken massive financial hits due to the shutdown. When things reopen, little by little, the priority is going to be damage control and stabilisation. Nobody is going to make big ticket purchases like cars or real estate or jewellery unless they absolutely have to for some time. All whims are deferred.

I hope I am correct but 4 wheelers have become essential, and people will buy them as opposed to real estate or jewellery.

Originally Posted by volkman10

India’s largest car maker is meanwhile witnessing an increasing number of queries online for its vehicles, Bhargava said, underscoring pent up demand for entry level or affordable hatchbacks in the domestic market.

Originally Posted by The Rationalist

These disinfecting tunnels are unscientific if it is meant for workers! Moreover it is harmful for human beings. Hope the next generation get scientific temper and don’t follow such stupidities.

Running factories is a good move if the idea is to keep the plant running at a small scale and few hundred workers will get wages.

Why should they be unscientific? This is the way decontamination is done globally depending open on the BSL level. For example, those big fans which mist the air at weddings etc are also effectively dousing you with millions of droplets of cold water. What is important is what they are mixing in it. I would be comfortable with what a large manufacturer is using in this kind of a tunnel if it stops the COVID-19 virus from spreading.

Reopening factories in a staggered scientific manner with safeguards is the ONLY way thousands of workers (permanent or contract) and management staff will save their jobs. India INC will not be able to pay most of them a couple of months from now.

[sharninder]

I think it's just the govt looking like they want to act in the interest of workers. Even if they do make vehicles, who's going to be buying them ? I'm guessing the economy is going to tank anyway, don't see a lot of salaried people buying vehicles in this year anyway.

[The Rationalist]

Originally Posted by itwasntme

....
Why should they be unscientific? This is the way decontamination is done globally depending open on the BSL level. For example, those big fans which mist the air at weddings etc are also effectively dousing you with millions of droplets of cold water. What is important is what they are mixing in it.

Why should they be unscientific, just because it is NOT SUPPORTED BY SCIENCE. WHO and CDC doesn’t recommend this nonsense as it is not supported by evidence. The virus is coming from lungs and the only way to reduce its spread is by wearing mask and not letting people with illness to mingle with others. Dipping a patient in sanitiser solution or alcohol based disinfectant won’t help, just because some idiot thinks so.

In my home state Kerala two such tunnels were installed and the scientific experts had to intervene and the Chief minister rectified the mistake and stopped it.

[Bibendum90949]

The business world post this extended lockdown would be a totally different one. Car manufacturers should equally focus on how to front end customers, not just restarting factories and production.

Showrooms should be equipped well so that one doesn't feel apprehensive about walking in. Same goes with test drives and other touch point experiences .They've to brain storm how it could be done from now on and make customers at ease because buying a car is a big ticket item for most and it can't happen without a buyer having a first taste of the product after seeing it in flesh and experiencing it. Any other product can be virtually ordered as you would know what it is going to be like, not cars.

Safe and hassle free customer experience may well be the order of the day. Hope the industry would soon stand on it's feet again.

No doubt the show must go on.

[jasjotbains]

While the initiative to open the industry partially may sound good, there are a lot of people who would've been without salaries/taken pay cuts/decided that vehicles are not for them. With the high GST component in a vehicle's overall price, customers may not be inclined to spend on a vehicle right now. This is a good time for the auto industry to push for GST reduction (to reduce overall price and fuel demand), even though it may not seem alright to a lot of people, especially since the Govt is taking a hit on its revenue during these testing times.

[landcruiser123]

Penny wise, pound foolish IMHO. While I'm no doctor, public health official or economist, I see this as a useless endeavor. The government can't risk the health and safety of workers.

If the crisis is prolonged, many people won't venture out. Sad as it may be, some middle class people won't have jobs. So there is no question of latent demand. Ain't nobody buying cars if they have no $$$.

If the crisis is short (which I hope is the case), I don't see why car makers can't ramp up production quickly to meet whatever latent demand is there.

[warrioraks]

Taking a slightly different view here - I think this is the government’s way to say that a lockdown cannot be perpetual. Slowly and steadily, normalcy needs to be restored. Start with units which might be able to maintain social distancing and containment, as well as provide resident medical facilities to the staff.

To decide on how many cars to produce or whether to produce anything at all is not government’s job. That is best left to the manufacturers and their planning departments.

Added later - Considering that the automotive industry has offered to manufacture ventilators, the intention from government might also be to allow few industries that can help with production of ventilators or other essentials if need be.