A fire at Mobis India's facility affected the availability of key components. Mobis India is a supplier and group company to Hyundai.
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Hyundai Says Chennai Plant To Resume Normal Output By June 22 After Fire
According to two executives aware of the development, Hyundai has started making alternative sourcing arrangements to minimise the impact on production.
Hyundai also said most production losses caused by the disruption are expected to be recovered within the next quarter.
Source : X/@dt_next
- Fire at Mobis supplier disrupted Hyundai Creta production.
- One Chennai plant output dropped; full recovery by June 22.
- Hyundai expects no significant June sales impact; inventory adequate.
Production of Hyundai Motor India’s bestselling SUV Creta has been disrupted after a fire at the facility of supplier and group company Mobis India affected the availability of key components.
According to two executives aware of the development, Hyundai has started making alternative sourcing arrangements to minimise the impact on production.
The disruption has affected operations at one of Hyundai’s two manufacturing plants in Chennai.
Daily Production Drops Sharply
According to one executive, daily output at the affected Chennai plant has fallen to nearly 200 vehicles from more than 1,000 earlier.
Mobis India supplies audio components and several other automotive parts to Hyundai Motor India.
The company said production at its other Chennai facility and its Pune plant in western India remained “largely unaffected”.
Hyundai Expects Production Recovery By June 22
Hyundai Motor India said on Wednesday that the affected Chennai plant is expected to resume normal production by June 22 following the fire incident at the Mobis India facility last week.
The company added that it expects to regain “production pace” at the plant by June 15.
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Hyundai also said most production losses caused by the disruption are expected to be recovered within the next quarter.
No Major Impact On June Retail Sales Expected
Despite the temporary disruption, Hyundai said it does not expect any significant impact on its retail sales during June.
The company cited adequate inventory levels available across its dealer network as a key reason for maintaining supply continuity.
The fire incident had earlier triggered concerns about possible disruptions in Hyundai’s supply chain, particularly for the Creta SUV, one of the company’s highest-selling models in India.
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Frequently Asked Questions
What caused the recent disruption in Hyundai's production?
Which Hyundai models or manufacturing plants are impacted by the disruption?
Production of the Creta SUV is disrupted, specifically affecting one of Hyundai's two manufacturing plants in Chennai. Other plants are largely unaffected.
How much has daily production decreased at the affected plant?
Daily output at the affected Chennai plant has dropped sharply to nearly 200 vehicles from more than 1,000 previously.
When does Hyundai expect production to return to normal?
Hyundai expects to regain production pace by June 15 and resume normal production at the affected plant by June 22.
Will the production disruption affect Hyundai's retail sales in June?
No, Hyundai does not expect a significant impact on June retail sales. This is due to adequate inventory levels across its dealer network.
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