Maruti Suzuki on Wednesday announced the closure of factories in Haryana to make oxygen available for medical needs.The company has been informed that Suzuki Motor Gujarat has taken the same decision for its factory, Maruti Suzuki said.
The largest carmaker advanced its bi-annual maintenance shutdown between May 1 and May 9 from earlier plan of June.
“As part of the car manufacturing process, Maruti Suzuki uses a small amount of oxygen in its factories while relatively much larger quantities are used by the manufacturers of components. In the current situation, we believe that all available oxygen should be used to save lives,” the company said in a statement.
Maruti Suzuki chairman RC Bhargava on Tuesday said it is keeping a close watch on the Covid-19 situation in the country and the impact of oxygen availability to its parts suppliers although it is continuing with full production to meet the robust demand.
The company also said the semiconductor shortage continues to be an issue and will be there for some time but it has not cut down on its CAPEX for the ongoing fiscal despite the challenges of the pandemic.
Maruti’s fourth-quarter results took a hit due to rising commodity prices and supply chain disruptions, with its EBITDA margin slipping to 8.3% in the March quarter and falling short of analysts’ estimate of 9.1%, according to Refinitiv data.
“With this second wave the demand for personal transport will, if anything, strengthen, not weaken. More and more people will want to have their personal transport,” Chairman RC Bhargava told reporters after Maruti posted a near 10% drop in quarterly profit.