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The automakers are now allowed to operate at their 100% capacity. (Bloomberg)
The automakers are now allowed to operate at their 100% capacity. (Bloomberg)

Carmakers in India's auto industry hub get green signal to resume full operation

  • Renault-Nissan, Ford and Hyundai halted work at their respective plans last month due to the pandemic.

  • The automakers will now have to follow uniform safety guidelines.

Car manufacturers present in Tamil Nadu get green signal to operate at their full capacity. The state that is known as Indian automobile industry hub is one of the worst-hit due to the pandemic. It has allowed the industrial activities with export commitments to resume operation at 100% capacity.

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Auto manufacturers being one of the major stakeholders in the state's manufacturing sector has also received the green signal to resume 100% capacity utilisation. With this the car brands such as Renault-Nissan, Hyundai and Ford are free to operate at their fullest capacity, despite worker protests over safety during the pandemic.

A senior state government official said to Reuters that any company that exports or supplies to export industries will be allowed to operate at full capacity as the Covid-19 positive cases have been lowered in the state.

New positive cases in Tamil Nadu have reduced from more than 30,000 a day in May this year to around 8,000. However, Tamil Nadu still accounts one-seventh of all cases in the country. Renault-Nissan employees moved Madras High Court last month appealing to halt operations for worker safety during pandemic.

The labour unions for the carmakers have written letters of protest, arguing that hundreds of workers in Chennai have fallen ill with Covid-19 and many have died. Due to the workers' agitation and strike, Renault-Nissan was forced to halt operations in the state. Ford and Hyundai too halted work at their manufacturing facilities in May.

Responding to that appeal, the Madras High Court tasked industry safetty officials in June 2021 to visit the carmakers' plants in the state to develop uniform safety guidelines for the sector.

  • First Published Date : 20 Jun 2021, 05:50 PM IST