Suzuki Maruti Urged Suppliers to Get Ready for Second Wave of Covid
Suzuki Maruti Urged Suppliers to Get Ready for Second Wave of Covid. Osamu Suzuki, president of the Japanese parent company of Maruti Suzuki India Ltd, urged parts suppliers to their Indian unit to increase production and build large inventory to meet the automaker's demand, even if there is a second wave of Coronavirus infections are sweeping the country and disrupting production.
It is the first time in more than a decade that the 90-year-old Suzuki Motor Corp. Patriarch has personally contacted Maruti suppliers. Mint has reviewed a copy of Suzuki's June 17 letter.
Suzuki Maruti Urged Suppliers to Get Ready for Second Wave of Covid
“The blockade has been re-imposed in some cities (India) and we are even more concerned about the chaos / confusion. Therefore, we ask you to take the necessary steps to be able to respond to the plan to resume production after July and we ask you to create sufficient inventories for the preparation of the second wave of the Covid virus, "said Suzuki, declaring himself. concerned about the development of the coronavirus situation in India.
He was referring to the Tamil Nadu government's decision earlier this week to reimpose a 12-day blockade, effective from June 19. The state is home to automaker factories, including Hyundai Motor India Ltd, Eicher Motors Ltd, and Renault India Pvt. Some suppliers in Maruti are also based out of state, and the company may face some impact on production.
“At Maruti Suzuki, we also plan to build an inventory of internally produced parts and equip ourselves to avoid the same train route. I am sorry to have made the above request in a situation where everyone is going through a difficult time due to the impact of the crown, but I would like to ask you to (consider) the situation carefully and request your special cooperation, "Suzuki said in the letter.
Mint announced Thursday that Maruti Suzuki expects to produce more than 100,000 vehicles each month, starting in July, significantly more than the 3,714 vehicles it produced in May, hoping that sales of the affordable entry-level hatchback will will recover from faster demand recovery. in semi-urban and rural markets.
Maruti is expected to produce between 30,000 and 40,000 cars in June.
“In India, the spread of lust continues and it seems impossible to predict the end. Given this, we are extremely concerned about the serious repercussions of this situation on the Indian economy. Although such circumstances exist, we would like to inform you that we expect to produce a monthly production of 100,000 vehicles or more after July, identical to that of the previous year, "said the octogenarian.
A spokesman for Maruti Suzuki declined to comment on an email request.
“This letter from the President highlights the stress on the supplier ecosystem due to the pandemic. Maruti needed someone of Suzuki's caliber to ensure suppliers invest in increasing production at a time when the demand outlook for the industry is negative, "said Avik Chattopadhyay, founder. Expereal, a brand consulting company.
It is the first time in more than a decade that the 90-year-old Suzuki Motor Corp. Patriarch has personally contacted Maruti suppliers. Mint has reviewed a copy of Suzuki's June 17 letter.
With India's largest automaker contributing over 60% of Suzuki Motor's profits, ensuring that Maruti Suzuki is prepared even if pandemic conditions worsen is critical.
Suzuki Maruti Urged Suppliers to Get Ready for Second Wave of Covid
He was referring to the Tamil Nadu government's decision earlier this week to reimpose a 12-day blockade, effective from June 19. The state is home to automaker factories, including Hyundai Motor India Ltd, Eicher Motors Ltd, and Renault India Pvt. Some suppliers in Maruti are also based out of state, and the company may face some impact on production.
“At Maruti Suzuki, we also plan to build an inventory of internally produced parts and equip ourselves to avoid the same train route. I am sorry to have made the above request in a situation where everyone is going through a difficult time due to the impact of the crown, but I would like to ask you to (consider) the situation carefully and request your special cooperation, "Suzuki said in the letter.
Mint announced Thursday that Maruti Suzuki expects to produce more than 100,000 vehicles each month, starting in July, significantly more than the 3,714 vehicles it produced in May, hoping that sales of the affordable entry-level hatchback will will recover from faster demand recovery. in semi-urban and rural markets.
Maruti is expected to produce between 30,000 and 40,000 cars in June.
“In India, the spread of lust continues and it seems impossible to predict the end. Given this, we are extremely concerned about the serious repercussions of this situation on the Indian economy. Although such circumstances exist, we would like to inform you that we expect to produce a monthly production of 100,000 vehicles or more after July, identical to that of the previous year, "said the octogenarian.
A spokesman for Maruti Suzuki declined to comment on an email request.
“This letter from the President highlights the stress on the supplier ecosystem due to the pandemic. Maruti needed someone of Suzuki's caliber to ensure suppliers invest in increasing production at a time when the demand outlook for the industry is negative, "said Avik Chattopadhyay, founder. Expereal, a brand consulting company.
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