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    Automobile, consumer companies go all out to ramp up production ahead of festival season

    Synopsis

    While demand is picking up, the spread of the Covid-19 is causing uncertainties over component supplies and availability of workers. The companies are trying to ensure that they do not run short of stock during the festive season, the most crucial two-three months for them in recent years as that will decide how they end a year destroyed by the pandemic.

    Agencies
    MUMBAI | KOLKATA: Maruti Suzuki has postponed its ‘Family Day’ celebrations from the upcoming weekend to two days in October and March. The nation’s largest carmaker will, instead, run its factories at full steam over the weekend.

    Two-wheeler maker TVS Motor has decided to operate its production facilities on a few Sundays, industry insiders said. At the local manufacturing units of LG and Samsung, there will be no holidays over the next few weeks, company executives said.

    Manufacturers of automobiles, consumer durables, electronic products and several other sectors are operating at full capacity to make up for lost production in the past few months and stock up for the festive season.

    While demand is picking up, the spread of the Covid-19 is causing uncertainties over component supplies and availability of workers. The companies are trying to ensure that they do not run short of stock during the festive season, the most crucial two-three months for them in recent years as that will decide how they end a year destroyed by the pandemic.

    “Every effort is made to beef up production to the extent possible to ensure there is sufficient inventory and some buffer stock,” Godrej Appliances business head Kamal Nandi said.

    maruti
    Raw material challenges remain
    The manufacturer of refrigerators and washing machines is facing issues with supplies of raw materials and components since a few suppliers are in containment zones, he said.

    LG India, the country’s largest home appliance maker, is running three shifts for some products like refrigerators and microwave ovens instead of the usual two, to ensure there is sufficient inventory in case of a disruption, its vice president Vijay Babu said.

    Maruti Suzuki is likely to produce 158,000 vehicles in September, and expand the output further to more than 190,000 in October, said people in the know. “We don’t give any guidance on volume production and new model development”, a Maruti Suzuki spokesperson said when ET sought the company’s response.

    Manufacturers are running special buses and providing air tickets to employees who had left the industrial towns at the beginning of the lockdown and are now returning to work. In the automobile space, some component makers are extending financial support to their small vendors. A few are also moving workers between factories.

    (Additional reporting by Bhavya Dilipkumar)
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    9 Comments on this Story

    SkyWalker 115 days ago
    We have the highest unemployment rate. People don't have money to splurge, this is going to be a very subdued Diwali
    Krishna Kumar Malani115 days ago
    Furthermore, Amazon is going to perform exceedingly well this Diwali, with cut throat prices. This is a big hit for offline retailers who will be worried about selling and will be manipulated by large online companies. There needs to be regulation around this during peak times! Krishna Kumar Malani
    AGUPTA115 days ago
    If that is so it will be a break Diwali , people won't spend any money this time, govt has alreasy looted enough , we have a Bhallal Deva(Bahubali Character) sitting as King, he is snatching everything that people have, now hell bent on selling every prized asset of the country
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