Chennai floods disrupt auto parts supply across India

CHENNAI: The Chennai floods have not only hobbled the Detroit of the South with most companies in the Oragadam-Irrugattukottai-Maraimalainagar belt shutting down for most of last week, but it is now beginning to hit automobile companies across India. Being an important auto hub, Chennai is home to a large number of auto parts vendors. Already, Toyota Kirloskar Motor ( TKM) has announced a one-day shutdown on Sunday due to parts shortage from its Chennai vendors. The company will take a call on whether to extend the shutdown or not on Monday depending upon the situation in Chennai. Others like Mahindra & Mahindra are already suffering production cuts due to irregular parts supply from Chennai vendors.

Said N Raja, SVP and director marketing, TKM: "We have around 50 Tier I and many Tier II suppliers in Chennai who are impacted by the floods there. Besides, our dealerships are also impacted because of the incessant rains in Chennai. Our teams continue to monitor and support our suppliers and dealer partners to restore their normal operations. However, considering the severe situation, we were constrained to stop production at our plant for one day (Sunday). We would try to recover this loss soon so that our customers are not inconvenienced," he added.

Chennai's parts hub supplies to a number of auto companies both in and outside Tamil Nadu. Many of them are already facing a production snag due to parts shortage. Said Pawan Goenka, M&M group president, auto & farm sector: "We are not effecting a shutdown but have been losing production for the last 2-3 days and will continue to lose for another couple of days. However, we think the loss will be made up and there will be no impact on sales."

The good news though is that a number of Chennai-based automotive factories opened on Sunday after two-four days of closure. Renault-Nissan's Oragadam plant, for instance, opened on Sunday (December 6) and its Chennai-based IT server, down for most of last week, is also up and running. Hyundai too ran all shifts at its Irrugattukottai plant on Saturday and Sunday (December 5 & 6). It is reviewing the situation on a daily basis.

Daimler India Commercial Vehicles, which also has its factory in Oragadam, has been shut from the second half of Tuesday (December 1) until Sunday and plans to resume work from Monday (December 7).