COVID-19: Ashok Leyland to start production at select plants
Published On Apr 23, 2020
The company secured permission from relevant authorities to resume production at some plants. After a thorough evaluation and ensuring the supply chain readiness, the company will commence production.
To cope with the rising COVID-19 cases, India is under lockdown until May 3 with strict social distancing guidelines. As per the government directions, all the manufacturing plants are shut-down completely. However, authorities are exploring ways and means to relax some of these stringent measures to ensure that the economy gets back to normal gradually.
Chennai based truck maker, Ashok Leyland announced that it has secured permission from authorities to start production at its Alwar, Bhandara and Pantnagar plants. Although getting the plants back to normal is easier said than done. All the major vehicle production plants work on just-in-time inventory schedules and depend on an extensive supply chain at the backward operation. Unless the parts and aggregates suppliers are restored, full production at plants may be challenging.
To get back the plants up and running, Ashok Leyland is currently working out the supply chain readiness.
N.V. Balachandar, President - HR, Communication and CSR, Ashok Leyland said, “We are currently working out the supply chain readiness post which we will resume operations and commence production in line with demand.”
Will other truck makers follow?
The lockdown is effective until May 3, except essential services; everything else remains shut. On April 20, the government has announced a partial lifting of lockdown for critical services and industries to operate by adhering to the safety and social distancing guidelines.
While Ashok Leyland has received permission to start production, it is unclear whether other truck makers will follow soon. Before the plant starts humming with activities, OEMs should get the required workers and parts in place. Travel restriction and concerns around safety will make it difficult to get employees and workers back to factories.
Yesterday, car maker Maruti Suzuki also obtained permission from the Haryana government to start production at its Manesar plant. The company will operate the plant in a single shift only.
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