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HMSI to re-open three factories, provide financial support to dealers – Mint

NEW DELHI: Honda Motorcycle and Scooter India Pvt. Ltd (HMSI) on Saturday announced the restart of production operations at three of its factories based in Haryana, Rajasthan and Gujarat. The company has also decided to bear the interest cost for vehicle stocks held by dealers for 30 days due to the lockdown in different states.

With dealers under financial pressure to repay credit taken from banks automakers are chipping in to maintain the credit score and financial health of the dealer partners. Similarly, some manufacturers are offering insurance benefits to employees at dealerships to will help boost their morale and improve productivity when the showrooms open after the regional lockdowns are removed.

With covid cases in a steady decline over the last two weeks some automakers like Hero MotoCorp, Maruti Suzuki India Ltd and others have started reopening their plans with a single shift of vehicle production.

With cases still on the higher side in Karnataka, the Japanese manufacturer has not yet commenced production operations at its factory there.

“We are gradually resuming production operations following all Covid-19 compliance and lockdown guidelines by respective state governments. While there are visible signs of recovery in the country, we will continue to monitor the situation very closely and are moving forward with safety & well-being of all our stakeholders as a top priority,” said Atsushi Ogata – managing director, president and chief executive, HMSI.

Manufacturing and sales of automobiles came under pressure from the first week of April when Maharashtra announced strict lockdown measures. Delhi, Haryana, Karnataka, Tamil Nadu and others followed suit. Maruti Suzuki India Ltd, Hero MotoCorp Ltd, Hyundai Motor India Ltd and others have either stopped production or reduced output significantly.

Some manufacturers like Tata Motors and Bajaj Auto Ltd have been continuing with production with limited capacity. Some firms also shut down plants since deliveries stopped and sales are expected to remain subdued for the next two months.

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