Chennai rains may affect vehicle deliveries

A flood has hit Chennai along with continuous rain which has claimed over 200 lives by now. All the automobile manufacturers in the state have shut down the production.

Chennai is experiencing the hardest times. The heavy rain and flood has claimed over 200 lives by now. Continuous attempts are being made to rescue people stuck in the floods. The entire economy has come to a halt. Chennai is the biggest automobile manufacturing hub in India. 25% of the country’s annual production comes from the Southern state.

The flood has led to the shut down of major manufacturing units of companies like Renault-Nissan, Hyundai, Ford, Royal Enfield, etc. The Hyundai unit has suspended the production since yesterday night. The country’s second largest automaker has announced that the plant will be closed till Friday and the production will begin on Saturday if the weather conditions have improved. “The plants will remain shut down today and tomorrow and will open on Saturday looking at the weather situation,” a Hyundai spokesperson said. This will extend the waiting periods of cars like Hyundai Creat, Elite i20 and Grande i10.

Renault will incur the maximum loss as the plant produces over a 1,000 units a day after the launch of the very successful Renault Kwid. The Kwid has already received a booking of 70,000 units which is still to be met. The company was trying hard to meet the market demand for the baby Duster when these floods arrived to worsen the situation. The plant is closed for already a day now and is expected to remain closed for a week.

The production plant of Ford India is also shut down due to the floods. The plant is already closed since two days now and will resume only when the conditions improve. The Ford EcoSport, Fiesta and the Endeavour are currently produced at this plant. Some of these are also exported from Chennai.

Eicher Motors owned Royal Enfield also has a two major manufacturing facilities at Chennai. The offices and plants at Thiruvottiyur and Oragadam are closed down since December 1 and will resume only when the condition improves. The Royal Enfield bikes already have a long waiting period which will be extended due to this flood. The company has confirmed that the deliveries will be affected. However, the amount of impact will be communicated to the consumers through the dealers.

Chennai also houses a number of suppliers who supply different parts to automobile manufacturing facilities across the country. These facilities will also be affected as the suppliers will not be able to deliver parts on time. So, the waiting period of other vehicles may also be affected.

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