Automakers in Indore get rolling after Covid stall


 

Automakers in Indore get rolling after Covid stall

Gradual relaxations announced by the state government for industries and tweaks in labour laws in the lockdown — aimed at reviving the economy hit by the Covid-19 crisis – have encouraged many companies to recommence operations after weeks of strategizing on safety and demand.

 

INDORE: Leading automakers and auto component manufacturers in Indore, the financial capital of Madhya Pradesh, are slowly getting into gear, beginning with dispatch of ready vehicles and auto parts to cater to immediate demand.

Gradual relaxations announced by the state government for industries and tweaks in labour laws in the lockdown – aimed at reviving the economy hit by the Covid-19 crisis – have encouraged many companies to recommence operations after weeks of strategizing on safety and demand.

Volvo Eicher Commercial Vehicles Ltd (VECV), two-wheeler manufacturer Mahindra and Mahindra Ltd, tyre major Bridgestone India, automotive component maker Gabriel India Ltd and a few other players in the sector have resumed operations in MP at 15-40% capacity utilization.

“We are starting in a small way with 30-35% workforce. The focus is to dispatch parts at various dealers’ workshops and make deliveries of sold vehicles stuck in the plant amid lockdown,” Vinod Aggarwal, MD and CEO of VECV, told TOI. VECV has resumed operations at Pithampur, Dewas and Baggad in MP.

A spokesperson for M&M Ltd told TOI, “The company’s two-wheeler facility at Pithampur reopened on May 6. As the supply chain from other parts of the country opens up and stabilises, we expect the output of the plant to increase. Export shipments will also resume soon from Pithampur to Europe, consequent to easing of restrictions there.”