Bajaj Auto has resumed operations at its Chakan plant, beginning with a single work shift that starts at 8am. The reopening of the Chakan facility comes after the relaxation of the lockdown measures by the Government, in an attempt to restart economic activity. Production at the factory will be carried out in line with the health and safety guidelines issued by the Government.
Bajaj's Chakan facility is located on the outskirts of Pune city, which is one of the worst affected by the COVID-19 pandemic. This explains why the Chakan facility resumed operations about a week after the Aurangabad and Pantnagar factories restarted.
The Chakan factory produces motorcycles under the KTM, Husqvarna and Dominar brands. These include the newly launched Husqvarna Svartpilen 250 and Vitpilen 250 as well as the Dominar 250. A sizable chunk of the total production is exported, which made it crucial for Bajaj to resume operations.
While Bajaj is aiming to complete its pending orders, it is also depending on its parts vendors to resume operations. At present, Bajaj will build motorcycles using the inventory that is present in the plant. However, it is imperative that its vendors also resume operations to ensure there are no hiccups in the entire manufacturing process. Reports suggest that Bajaj is closely monitoring the situation and is working towards restoring its supply chain in order to ramp up production.
The Government of India is working on a phased easing of the national lockdown, which came into effect on March 25. With the economy taking a huge hit during the lockdown and the auto sector battling unprecedented circumstances, the resumption of economic activity is the need of the hour.
The month of April 2020 was the worst that the auto sector has ever seen, with a number of companies reporting zero domestic sales. With gradual lifting of the lockdown and resumption of businesses, there's hope that the month of May will be different. Stay tuned as we bring you more updates.
Azaman Chothia
Vishal Venugopal
