Indian auto manufacturer Mahindra & Mahindra has advanced its annual scheduled maintenance for all its plants to May from June. The maintenance period in May will be for four days each for all its plants across India, in a staggered manner.
Localized lockdown restrictions have led to both supply and demand-side disruptions said the company in a release. This move comes as a means to mitigate the impact of lockdown.
The second wave of COVID-19 in India is challenging the auto sector on several fronts. Factory shutdowns are taking place across India with major manufacturers like Maruti Suzuki, Hero MotoCorp and Ashok Leyland. All announced shuttering manufacturing plants owing to rising COVID-19 cases.
Mahindra & Mahindra has manufacturing plants in Jaipur for farm tractors, commercial vehicle production plant in Zahirabad in Telangana. Two-wheeler plant in Haridwar in Uttarakhand, Passenger vehicle segment in Kanchipuram in Tamil Nadu. The company has four plants across Maharashtra, which majorly manufacture passenger vehicles.
Mahindra & Mahindra’s farm segment sales in April fell less sharply compared to other companies. M&M sold 27,523 units, down 11pc from March. M&M reasoned that supply chain disruptions due to lockdown have impacted demand.
The company’s passenger vehicle segment grew by 9.5pc in April from March. Production challenges will continue in May said the company. Demand remains good, but lockdown and closure of dealerships could lower sales, expects M&M.