Two-wheeler Manufacturers Observe Social Distancing By Shutting Down Plants For A Few Days

On the back of the #JuntaCurfew, six motorcycle manufacturers have decided to close down their plants for a few days to ensure the safety of their employees during this COVID-19 pandemic. Bajaj Auto was the first to suspend production, given the proximity of its Akurdi and Chakan plants to Pune, the city with the highest number of cases recorded in India.

Following the government’s directives, Royal Enfield, TVS, Hero MotoCorp, Suzuki and Honda have also closed down their doors for the time being. Hero has, in fact, enforced this shutdown even in its facilities in Colombia and Bangladesh. Even electric two-wheeler maker, Ather Energy, has had to close its doors with the lockdown in effect in Bengaluru until March 31. While manufacturers will be taking a call regarding when it would be in the best interest of the employees to resume production, all companies have enforced work from home for those in research and administration.

[UPDATE: Yamaha and Benelli have also suspended production at their respective facilities.]

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How does this shutdown affect sales? With manufacturers having to clear their BS4 inventory before March 31, there could be a similar situation like what we witnessed during the BS4 transition, with heavy discounts offered. However, this time around the discounts offered will not be as ludicrous as 2017 when the BS4 emission norms came into effect.

We are also likely to face delays in deliveries of fresh stock. While established players can handle the slack, emerging players might have their work cut out. Officials at Ather Energy have confirmed that this current lockdown should not affect the delivery timelines of the existing bookings of its 450 electric scooter. It will also not delay the arrival of the 450 Plus and the 450X by much. However, a contingency plan is being developed as a longer period would affect the timelines.

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