APN News

  • Tuesday, April, 2024| Today's Market | Current Time: 11:38:56
  • Prospects of an immediate resumption seem bleak for auto industry says Pawan Ruia

    Published on April 20, 2020

     

    Even as the centre issued a statement related to the proposed stage-gated end to the lockdown, automakers aren’t getting started in a jiffy. Pune belt, which is responsible for one fourth of the country’s car production, is still being kept in the red zone. As a result, prospects of an immediate resumption look bleak.

    Auto manufacturers are eagerly awaiting a green signal from the local administration on resuming the production after the latest guideline issued by the Ministry of Home Affairs.

    According to the Ruia Group chairman, Pawan Ruia, it is important to respect the nature of the lockdown without taking decisions in a hurry.

    “It is important to abide by the guidelines of local authorities, while also respecting the orders of the state and the centre before getting started.

    However, one should monitor the situation as closely as possible,” Ruia said.

    All the important calls related to the resumption of manufacturing operation will be taken, based on the zones —red, orange/yellow, and green. At this juncture, the unfortunate thing is that the Pune’s Pimpri, Chinchwad and Chakan belt falls in the red zone, which is likely to delay the proceedings.

    Some of the main auto manufacturers operating out of the Chakan, Pimpri-Chinchwad belt are Volkswagen, Mercedes Benz, Mahindra & Mahindra, Tata Motors, Fiat Chrysler Automobiles and Bajaj Auto, etc.

    Talking about the situation, the spokesperson at Skoda Auto Volkswagen said, “We are assessing the guidelines and we will act based on the directives of the government.”

    Some of the auto manufacturers operating in the NCR region said that the central government has left it to the states to give approvals for commencing operations. However, the Haryana government hasn’t given any directive on this until Wednesday evening.

    Commenting on the uncertain situation, an industry executive said, “Our suppliers would also have to start operations for us to start the production. We are waiting for some communication from the government regarding opening up of activity in the belt.”

    The auto cluster is likely to face an immediate challenge regarding the availability of the truckers. The logistic industry must be aligned to resume normal business at any given time.

    SEE COMMENTS

    Leave a Reply