Hyundai, Nissan And Renault May Face Production Setbacks Amid Rising COVID Concerns

As workers of car manufacturing plants in Tamil Nadu raise issues over working conditions, expect longer waiting periods from the three brands

• Tamil Nadu is among the worst-hit states by the second wave of the pandemic.

• It is home to manufacturing facilities of major carmakers, including Hyundai, Renault and Nissan.

• Workers at the automotive factories are worried about the increased risk of infection.

• Worker strikes may force carmakers to reduce shifts or keep factories closed for longer.

• This could result in longer delivery timelines and delayed launches of new products in the coming months. 

As the second wave of COVID-19 continues to wreak havoc across India, workers at automotive plants in Tamil Nadu have raised issues over possible health risks and threatened to go on strike if their concerns are not addressed. Reports suggest carmakers may have to either halt operations or reduce the daily number of shifts further.

Tamil Nadu is home to the manufacturing facilities of major car brands such as Hyundai and Renault-Nissan. The state has also been hit hard by the coronavirus in terms of total infections. It is currently under lockdown but the auto industry is exempted from some of the more stringent regulations. As manufacturers strive to meet production deadlines, workers fear the high risk of infection in the current working conditions. 

If the number of shifts is reduced further or production is halted altogether, it would naturally aggravate the difficulties being experienced by the car industry. Waiting periods and delivery timelines for popular models from each carmaker have already been increasing due to the high demand and disruptions caused by the pandemic. 

Also read: 5 Things You Should Know About The Semiconductor Shortage Affecting The Car Industry

The Renault Kiger and Nissan Magnite, which were launched just before the second wave, had a waiting time of up to four months in some cities. Further delays can be expected for both new and existing orders due to the production setback. Meanwhile, Hyundai has already delayed the launch of its new model, the Alcazar. Currently, the factory has halted operations until May 31 as per state guidelines and it may be forced to run fewer shifts once reopened. As a result, the waiting period of popular Hyundai models such as the Venue, Creta, Grand i10 Nios, and i20 could be extended. 

Related: How A Car Is Made: A Step-by-Step Process

Car manufacturers across the country have been forced to take similar drastic steps in the interests of their workforce as well as to comply with the various lockdown norms implemented by different states. The economic impact of these measures on the auto industry will have to be dealt with afterwards.

Source