Maruti Suzuki Temporarily Shuts Down Manufacturing Facilities and R&D Centre

by Jatin Chhibber | 23/03/2020
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Other than Maruti Suzuki, automakers like Tata, Volkswagen, Fiat, Mercedes, Mahindra, Bajaj and Hero have suspended their manufacturing processes due to COVID-19 paramedic.

Indian's biggest carmaker Maruti Suzuki has shut down its both Gurugram and Manesar vehicle manufacturing facilities. All the other offices at the factory premises have also been shut down. Moreover, the company's Rohtak R&D centre has been retired too.

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Maruti's facility front shot

Indian's biggest carmaker Maruti Suzuki has shut down its both Gurugram and Manesar vehicle manufacturing facilities

In a recent press statement, the carmaker said,

“Maruti Suzuki has been taking all recommended precautions in its operations against the spread of COVID-19, which includes sanitization and hygiene, temperature checks, maximizing video-conferencing and minimizing contact, closing employee travel, health and distancing advisories to employees and following all government directions on the subject.”

“As a next step, the Government policy now requires closure of production and accordingly the company has decided on production closure. The Company will shut production and office operations at its facilities in Gurugram and Manesar, Haryana with immediate effect till further notice. The R&D Centre at Rohtak will also remain closed. The duration of this shutdown will depend upon Government policy.”

Other than Maruti Suzuki, automakers like Tata, Volkswagen, Fiat, Mercedes, Mahindra, Bajaj and Hero have also suspended their manufacturing processes due to COVID-19 paramedic. The shift from BS4 to BS6 has already resulted in Maruti Suzuki discontinuing all the diesel-powered vehicles. Initially, Maruti has no plans to offer diesel-powered BS6 models, but one can expect the carmaker to offer an oil burner with relatively expensive models like S-Cross, Brezza, Ertiga and Ciaz if demand arises.

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Side look of the line-up

Maruti Suzuki was already facing low sales, due to upgradation of BS4 models into BS6

The COVID-19 pandemic is affecting the Indian auto industry at a huge scale as the price of Maruti Suzuki's share on BSE has already been fallen to 5,049 on 20th March 2020. The value of this share was around 7,200 last month. Moreover, we expect the price of Maruti's stock to decline further this week as the carmaker has shut down its manufacturing plants.

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