Maruti Suzuki India prolongs maintenance shutdown over COVID-19 fears

Maruti Suzuki India Limited has reportedly extended its maintenance shutdown from May 9th to May 16th amidst rising COVID-19 cases across the country. However, it is difficult to ascertain whether the intention behind the extended shutdown is to guarantee the safety of its employees or due to the sudden fall in the vehicle demand.

Maruti Suzuki India had earlier stated the oxygen scarcity crisis in India is one of the primary reasons for the early shutdown since the manufacturing and assembly of parts involves fair use of oxygen.

For those unaware, the ongoing COVID-19 pandemic has reduced India’s passenger vehicle sales to its lowest in six years. The country’s automobile sector is preparing itself for a further decline in sales with a recent rise in the number of Covid-19 cases.

Maruti Suzuki India had reported a total sale of 159,691 units in April 2021. These figures include the domestic sale of 137,151 units, other OEMs adding 5,303 units, and exports contributing 17,237 units.

India’s largest automaker sold around 632 units and 143,245 units in April 2020 and 2019 respectively. In this context, a spokesperson from Maruti Suzuki mentioned that the April 2020 sales number was insignificant considering the whole country was under strict lockdown.

Maruti Suzuki India reported a decrease of 6.7% in financial year 20-21 sales. Domestic sales too plunged by 48% in March 2020. It appears that the automotive giant’s domestic sales in March 2021 have recovered to March 2019 levels.

It is also worth mentioning that India recently recorded its highest ever single-day COVID-19 death count on Saturday, as cases continue to rise. Various states are likely to impose stricter lockdowns to curb the rise in daily cases.

To boost the fight against the pandemic, Maruti Suzuki India has collaborated with two firms namely SAM Gas Projects Private Limited and Airox Nigen Equipments Private Limited to help improve the production of PSA oxygen generator plants.

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https://www.news18.com/news/auto/maruti-suzuki-extends-maintenance-shutdown-due-to-covid-19-pandemic-3721706.html