Resumption of operations still a challenge for auto sector: Ashok Leyland MD

Hinduja Group flagship firm Ashok Leyland on Thursday said resumption of operations remains a challenge for the automobile industry despite the government’s permission to do so in a phased manner in select geographies.

There is a need for the industry to collaborate with local agencies to ensure uninterrupted supply chain for original equipment manufacturers (OEMs) to commence production and help boost the economic revival of the nation, Ashok Leyland Managing Director and CEO Vipin Sondhi said.

"While the government has given the auto sector the permission to resume operations in a phased manner in certain geographies, with certain norms and conditions, it still remains a challenge for the industry to resume operations," he said.

Stating that auto OEM's are dependent on the ancillary sector, Sondhi said, "A smooth flow of the complete supply-chain is vital for production of vehicles."

This is because, while the OEM production unit might be in the green zone, even if one ancillary unit that supplies a small part happens to be in the red zone, it will make a component of the vehicle unavailable, thereby making the production process impossible, he added.

Earlier this week, major automobile manufacturers including Maruti Suzuki, Hyundai, Toyota, Ford, Mercedes-Benz and Tata Motors had said they are yet to resume production citing supply chain issues and closure of showrooms during the lockdown.

The home ministry had allowed industrial units in rural areas and those outside municipal limits to resume partial production under strict safety and hygiene norms from April 21 with an eye on kick-starting economic activity during the extended lockdown up to May 3.