Coronavirus Update: Lockdown Extended, Zero Auto Sales In April

  • May 3, 2020
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Carmakers gear up to resume production

India is gearing up to work through the coronavirus pandemic. New directives from the government aim to repair the havoc wreaked on India’s working class. There are plans to send migrant workers back home and plans to rekindle the economy. Here is a compilation of major news stories since our last update

New Government Order: 

The Ministry of Home Affairs (MHA) has quantified the risk of coronavirus infection throughout the country. There are four zones defined -- green (least risk), orange, red, and containment zones. The latter will have all activity restrictions in place for two more weeks after May 4 onward. In green zones, economic activity and intra-state public transport will be allowed with the requisite precautions in place. We have already discussed the operating procedures for industries and economic activities in our previous update. 

Zero Auto Sales In India: 

For the first time ever, carmakers in India have registered zero sales in the country in the month of April. Production units and dealerships were shut during the coronavirus lockdown. Maruti Suzuki announced that it had exported 632 vehicles following the MHA’s previous order which had allowed production, construction and trade after April 20. Maruti has clarified that it will not resume full-scale production until it can sell cars through dealerships. A number of carmakers will switch to online car sales to ensure the safety of their customers and employees. 

MG’s Hector Ambulance and MAX Ventilator Association: 

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MG Motor is helping the AB Industries-owned Max Ventilator to scale up its production of ventilators. The carmaker will utilise its supply chain expertise to bring monthly output to 300 units in the next 8 weeks. The second phase will scale it up further to 1,000 ventilators per month. In addition, the carmaker has donated an MG Hector Ambulance to a hospital in Halol, Gujarat. It is equipped with an automatic stretcher loader, a 5-parameter patient monitor, and an oxygen regulator. 

FCA Donates Medical Equipment And Food Rations: 

Fiat Chrysler Automobile India has pledged to donate medical equipment, protective gear and dry food worth Rs 2 crore in Mumbai, Pune, and Chennai. FCA India Engineering is working with the Sevalaya in Chennai and United Way Mumbai to provide 1,500 needy families and senior citizens with ‘Family Kits.’ These include a month’s supply of dry rations and hygiene products such as toothpaste and soap enough for a 4-5 member family. In Pune, FCA India Engineering will provide medical equipment for a 42-bed isolation ward in a hospital run by Voluntary Health Services. Naidu Hospital in Chennai will receive an oxygen pipeline and air validation systems from the carmaker.  

Motorsport Update:

Moto GP has cancelled the German, Dutch and Finnish Grand Prix which were to be held on June 21, June 28, and July 12. In Formula 1, the June-end 2020 French Grand Prix has been cancelled. The FIA has extended the factory shutdown period by another four weeks. After 50 of the 63 days of shutdown, each team will be able to apply to have up to 10 personnel working remotely on projects.  

International Update: 

Volkswagen has begun operations at its Wolfsburg production facility. The carmaker will build Golf hatchbacks with longer production cycle times with fewer people working in a single shift. VW will enforce strict social distancing at its factories and will scale up production from 1,400 cars in the first week to 6,000 cars the following week. Skoda is following similar protective measures as it restarts production in the Czech Republic. 

Strict social distancing and outdoor activity restrictions are likely to be enforced in the long term in many countries including India. It is reassuring to see the Indian government relaxing its restrictions. We hope the new safety and hygiene measures are followed. The number of new infections with the new norms in place will give us a fair idea of the long-term efficacy of these measures.

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