The torrential downpour and floods in Chennai has resulted in heavy loss to the automobile industry of India. Being one of the major automobile manufacturing hubs in the country, the rains have disrupted the production of many Chennai-based automobile companies that include the Hyundai, Renault, Ford and Royal Enfield.
Among these companies, Hyundai and Renault will have huge negative impact. Both the companies launched biggest hits of 2015 as Creta SUV and Kwid hatchback. Both the vehicles reportedly received over 70,000 bookings in the beginning of December and demand 6 to 8 months of waiting period. With the rains that disrupted production, the waiting period is likely to increase. This also means the already booked customers will be forced to wait longer.
The current status quo is leading to a daily loss of Rs 172 crore in Chennai. Three to four days of production shut down through this week, about 20,000 to 25,000 vehicles stuck in the yards also makes the situation worse, reports The Economic Times.
Renault Nissan plant in Orgadam is likely to remain shut for this whole week and Hyundai Motor India may resume work on Saturday depending on the situation. "The plants will remain shut down today and tomorrow and will open on Saturday looking at the weather situation," a Hyundai spokesperson said.
Major two-wheeler brand in the city, the Royal Enfield also has shut two of its plant temporarily. This will also result longer waiting period to the popular models such as Classic range, which already commands 6-8 months of waiting period.