Hyundai Motor India Plant Suspends Operations Until 31st Due to COVID-19

[Asia Economy Reporter Kiho Sung] Hyundai Motor Group's Chennai plant in India will suspend operations until the 31st due to concerns over the spread of the novel coronavirus infection (COVID-19). This marks the halt of production not only in the U.S. and European plants but now also in India.

According to Hyundai Motor, the Indian government on the 22nd (local time) ordered all businesses, except essential sectors such as government offices, hospitals, and grocery stores in 75 COVID-19 affected areas, to cease operations until the 31st.

Accordingly, Hyundai Motor decided to suspend operations at Chennai Plants 1 and 2 in response to the Indian government's request. The 75 areas include major cities such as Chennai Kanchipuram, where Hyundai's plant is located, as well as Delhi, Mumbai, Kolkata, and Hyderabad. The timing for resuming plant operations is expected to follow the Indian government's decision. Although Kia Motors' Andhra Pradesh plant is not included in this measure, it is considering suspending operations to ensure employee safety.

This measure aims to prevent infection concerns among local employees, partner company staff, customers, and the community. Previously, the Indian government implemented additional measures such as banning foreign entries starting from the 3rd, temporary curfews nationwide, and factory shutdowns.

Hyundai Motor's Chennai plant in India recorded a production volume of 682,100 units last year. Furthermore, Hyundai had set a mid-to-long-term plan to increase production to 750,000 units this year to expand its presence in the Indian market amid sluggish sales in China. However, with the suspension of operations at the Chennai plant, achieving this year's target and the impact on local partner companies are inevitable.

Meanwhile, on the 19th, Hyundai Motor's Alabama plant in the U.S. confirmed one employee tested positive for COVID-19. Consequently, both the Alabama plant and Kia Motors' Georgia plant, which receives engines from Alabama, have suspended operations. Additionally, Hyundai's Czech plant and Kia Motors' Slovakia plant will close for two weeks starting from the 23rd in accordance with government measures.

This content was produced with the assistance of AI translation services.