The second Covid19 wave has hit India with even greater ferocity, the states were caught off-guard and ill-prepared. It has already started taking a toll on India’s economy. Several indicators project that India’s economy is feeling the stress of the ongoing deadly pandemic wave. While it may be due to local-level restrictions that some state governments have imposed, others are because citizens are choosing to stay indoors.
Rising cases have put brakes on the automotive sector that was just beginning to accelerate. This time Covid19 has impacted rural areas severely too and the impact shall be seen on Two Wheelers & Tractors as well. The sudden spike in cases has made the automakers worry and are looking forward with caution.
Tata Motors yesterday has released a statement highlighting the actions initiated by the OEM keeping the evolving Covid situation in mind. On the employees' front, it stated that "Keeping employee safety foremost, standard operating procedures have been updated for the prevailing second wave with the focus on expediting vaccinations, providing support to affected employees and their family members."
Tata has also committed to optimizing inventory levels at the dealers' end and working closely with the vendors to manage the volatile demand situation. It mentioned "The lockdown enforced in various parts of the country is expected to impact vehicle demand temporarily. Hence, the company has set in motion a comprehensive ‘Business Agility Plan’ to protect and serve the interests of its customers, dealers, and suppliers. By carefully calibrating and matching supplies with retail demand, Tata Motors shall ensure that optimal levels of inventory are maintained with dealers to meet whatever customer demands arise and also be prepared for a rebound in demand once the situation returns to normalcy. We will also continue to review and plan for the critical raw materials to cater to this volatile demand outlook and work closely with our vendor partners to meet the same."
Tata Motors reiterated the efforts it is taking to protect the interests of all stakeholders by utilizing the cash invested in the entire ecosystem in the most optimal manner.