Japanese Automakers Suspending Production in India

Economy

Tokyo, May 17 (Jiji Press)--Japanese automakers decided one after another to suspend vehicle production in India, where the spread of coronavirus variants has led to a devastating increase in infections.

The decisions came because employees in lockdown areas cannot commute to assembly plants and the spread of the virus has caused difficulties in procuring auto parts and other materials.

Concerns are mounting over the decisions' impacts on vehicle output schedules and earnings by Suzuki Motor Corp. <7269> and other Japanese automakers.

Oxygen for industry use has been increasingly used for treating coronavirus patients in India since late April, or around the time when the daily number of new infection cases in India soared to some 400,000. Under such circumstances, Suzuki suspended operations at three assembly plants for four-wheel vehicles in India earlier this month.

Over half of Suzuki vehicles are sold in India, with Suzuki President Toshihiro Suzuki admitting that his company is highly dependent on the South Asian country's automobile market.

[Copyright The Jiji Press, Ltd.]

Jiji Press