A combination of localised lockdowns, closure of non-essential retail stores, and challenges emerging from low industrial oxygen supplies has forced home appliance makers to temporarily halt manufacturing activity.
Japanese major Panasonic will shut its Jhajjar plant in Haryana for a week beginning Monday, as demand suffers on account of containment measures.
“There was a positive momentum in the market between January and March, as coronavirus cases were low and people were stepping out to buy. As the cases picked up in April, localised lockdowns have grown, hurting demand. At the same time, the safety of our people matters. We have, therefore, taken the decision to temporarily halt operations at our Jhajjar plant. This is for a week,” Manish Sharma, president and chief executive officer of Panasonic India and South Asia, said.
Half of the manufacturing units in Maharashtra could remain shut for the next fortnight as the state’s new Covid-19 norms come into effect. These include appliance and apparel makers, which fall in the non-essential category. On Tuesday, Chief Minister Uddhav Thackeray announced a 15-day statewide curfew and a host of other restrictions to contain the spread of the coronavirus. According to the order, all factories producing essential goods and services will remain operational at full capacity. Export-oriented units will remain open to fulfil their export obligations. Industries that require continuous manufacturing, too, can operate with 50 per cent workforce. Relaxation has also been provided for factories that offer in-house accommodation. But, all other factories must stop their operations for the next 15 days.
IHS Markitestimates a
global production loss of 1.3 million units in Q1 2021 resulting from the ongoing semiconductor shortage, as well as shortages of steel and polypropylene, and transit delays at ports. IHS notes the “
impact on new vehicle sales remains to be seen at this stage, as inventory levels remain healthy enough to meet today s demand.”
Due to the semiconductor shortage, production of Ford’s highly profitable F-150 is affected by shutdowns scheduled for
Dearborn Truck Plant the weeks of April 5 and April 12, and the truck side of
Kansas City Assembly the week of April 5. Production of various crossover models is affected by shutdowns of Ford’s Louisville Assembly Plant the weeks of April 12 and April 19, as well as production shutdowns at Oakville Assembly in Ontario the weeks of April 12, 19 and 26; the automaker has cut overtime at multiple plants.
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