India’s second-largest car maker, Hyundai Motor India Ltd (HMIL) has declared “no production days” this month for some of its production departments owing to tough market conditions for the automobile sector.Also Read - Wow! This Bali College Allows Students to Pay Their College Fees in Coconuts, Here's Why
The company, in a notification to its workers this month, said that due to prevailing market conditions, there will be no production days in its Engine Shop-1 between August 9-21 (10 shifts), and on August 10, 24, and 31 at Engine Shop-2 (nine shifts). Also Read - Indian Economy to Contract by Massive 10.3% in 2020, to Bounce Back Next Year: IMF
The company had “no production days” on August 10 and 12 at its Body Shop-2, Paint Shop-2, Assembly Shop-2 and Support Teams (three shifts) and Transmission-2 (six shifts). Also Read - India's GDP to Contract by 10.5% in FY21 Before Bouncing Back Next Year: Fitch Ratings
A company official, who did not want to be identified, told IANS that there are three engine plants and plans are there to start another shift in the third.
The demand for models like Venue, and Creta is good and production is going on. The company is also expecting good demand for its new model Grand i10 NIOS.
Incidentally, HMIL is not the only company which has declared “no production days”.
According to reports, several other vehicle and component makers have cut down production by closing down plants to align production to the demand.