Slowdown: Hyundai announced ‘No Production Days’ at Chennai Unit


Hyundai Motor India Ltd (HMIL) declared “no production days” this month for some of its production departments owing to tough market conditions for the automobile sector.

As per the announcement at the plant, the Korean auto major said, “due to prevailing market conditions, there will be no production in passenger cars, powertrain system, and related support departments”.

Accordingly, there was no production on August 10 and 12 at the body shop, paint shop, assembly shop, operating in all the three shifts. From August 9 to 21 there will be no production in engine shop-1 while engine shop 2 will be on August 24 and 31.

The demands for models like Venue, and Creta is good and production is going on. The company is also expecting a good demand for its new model Grand i10 NIOS.

Incidentally, HMIL is not the only company that has declared “no production days”. According to reports, several other vehicle and component makers have cut down production by closing down plants to align production to the demand.

Slowdown Impact on Industry

  • Ashok Leyland has introduced a Voluntary Retirement Scheme (VRS) and Employee Separation Scheme (ESS) for executive-level employees as part of its plan to cut the cost to mitigate the slowdown in the industry. 
  • Hero MotoCorp decided to close its manufacturing facilities for three days, Aug 15-18. The reasons stated are an annual holiday and due to the prevailing market condition. After car makers announced plant closures for a few days, Hero will be the first two-wheeler maker to officially announce a temporary stop in production.
  • Tata Motors had halt production at the company’s Jamshedpur facility, which produces commercial vehicles, for two days. The factory remained closed on August 16 and 17, owing to a decline in demand in the market.


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