NEW DELHI: India’s largest two-wheeler maker Hero MotoCorp has decided to suspend manufacturing at all its plants in light of the ongoing surge in spread of Covid-19 across the country. The shutdown, which is temporary and includes the global parts centre (GPC), is a first by a two-wheeler maker in this financial year. Last year, around this time, all automakers had to shut their plant and offices for a month due to the mandatory nationwide lockdown.
“In keeping with its commitment to the safety and welfare of its people, Hero MotoCorp has decided to proactively halt operations temporarily at all of its manufacturing facilities,” Hero MotoCorp said in a statement. But, the decision will not impact the company’s ability to meet the demand, which has been impacted due to localized shut-downs in many states and production loss will be compensated during the remainder of the quarter, it added. Inventory level at Hero dealership is pegged at 45–60 days.
It may also be noted that the decision comes at a time when demand for two-wheelers continue to contract due to restrictions and poor economic condition of buyers. According to Federation of Automobile Dealers Associations (FADA), retail 2Wheeler sales fell by a whopping 35.26 per cent in March 2021 to 11,95,445 units as against 18,46,613 units sold in the same month last year. To be sure, Hero’s retail sales fell by nearly 50 per cent year-on-year in March, said FADA.
Currently, Hero MotoCorp has eight manufacturing facilities, including six in India and one each in
Colombia and Bangladesh. In India, the plants are located at Dharuhera and Gurugram in Haryana, at Chittoor in Andhra Pradesh, at Haridwar in Uttarakhand, at Neemrana in Rajasthan and at Halol in Gujarat. The company has an annual combined manufacturing capacity of nearly ten units per annum.