Chennai floods affect car production, export and sales may take a hit

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chennai-floods

Chennai has been suffering from heavy rains for quite a few days now that has resulted in incessant floods creating havoc across the region. More than 200 people have died and many others have been seen struggling to get back to safe grounds and are relying on the government for relief. The situation has now impacted the auto industry as well with companies such as Hyundai, Royal Enfield, BMW and Renault suspending operations at their factories.

BMW has decided to keep its plant shut till 7th of December while Renault has decided to keep its plant shut for a day and will keep a close watch on the situation before resuming production. Royal Enfield, currently owned by Eicher Motors that has already lost production of 4,000 motorcycles in the month of November, issued a statement that the floods have also impacted supply of parts and logistics.

Abdul Majeed, Automotive Head, PwC said to Reuters that the impact on the whole ecosystem of car manufacturers and component makers will be really significant and it could be worse for the companies that export more models than they sell in India. He further went on to add that climate being a big issue, manufacturers will need to think about de-risking and as exports from India rise, manufacturers may need to think about having two or more plants.

Image Courtesy: India Today

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  • Hi Lakshman, we do understand your concern. However, we are just reporting facts, without being disregardful to the society. We’re sorry if it hurt your sentiments.

  • Lakshman says:

    I must take a moment here to appreciate you and the other auto websites concerns about the automobile industry taking a big hit because of this disaster. Just to keep you well informed the people in chennai are not relying entirely on the government relief. I can vouch for this as I have been their to witness in person. The entire city is drowning with people helping each other in different ways and the medias are worried about the automobile industry being hit and thinking about the losses on the export.

    A big salute to you guys for being worried about our economy instead of the people's welfare.

    PS: A sincere request ….. News like this just demotivates the spirit that the city has gained. Can these news be published after the city recovers from its situation ?