India also hit hard by COVID-19... Samsung, Hyundai, LG gradually halt operations (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] As India shows signs of the spread of the novel coronavirus infection (COVID-19), it is implementing measures such as refraining from going out and halting factory operations. Due to this, production plants of Korean companies operating locally are also shutting down one after another, raising concerns.

According to local media and business circles on the 23rd, the Indian government reportedly ordered on the 22nd (local time) the suspension of operations until the 31st for all workplaces except essential sectors such as government offices, hospitals, and grocery stores in 75 regions where COVID-19 has occurred.

Accordingly, production plants of Korean companies operating locally are also gradually stopping operations.

Samsung Electronics decided to suspend operations at its smartphone factory located in Noida, India, from the 23rd to the 25th. Uttar Pradesh, where Noida is located, has issued an order to close all workplaces until the 25th due to the spread of COVID-19. The Noida area is where Samsung Display is preparing to establish an organic light-emitting diode (OLED) module factory.

LG Electronics will also suspend operations at its production plants located in Noida and Pune, Maharashtra, until the end of this month. Maharashtra has issued a movement restriction order until the 31st. LG Electronics' Noida and Pune plants produce home appliances such as washing machines, refrigerators, and air conditioners. Among these, the Pune plant also produces some smartphones.

Hyundai Motor will suspend operations at its Chennai 1 and 2 plants starting from the 23rd. The timing for resuming factory operations is expected to depend on the Indian government's decision. Kia Motors' Andhra Pradesh plant is not included in this measure, but it is considering suspending operations in light of employee safety and other factors.

Hyundai Motor's Chennai plant in India recorded a production volume of 682,100 units last year. Additionally, Hyundai had set a mid-to-long-term plan to increase production to 750,000 units this year to expand the Indian market amid sluggish performance in the Chinese market. However, if the Chennai plant's operations are suspended, it will inevitably impact achieving this year's target as well as local partner companies.

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