For Hyundai’s Sriperumbudur unit alone, a seven-day halt in production may lead to the loss of production of over 16,100 units, considering a daily production of around 2,300 units. At an average price of around ₹10 lakh, these products may well be valued at over ₹1,600 crore. However, the fire may not affect the sales of any of these companies. Hyundai Motor is at present carrying inventory of up to one month at the dealers’ end. Though sources indicate that Mobis India is supplying some parts to Mahindra & Mahindra (M&M) as well, the company did not respond to Business Standard’s queries.
Hyundai Motor said in an exchange filing on Monday that this may lead to a temporary disruption in the automaker’s production operations. Though the company did not reveal the extent of the damage, a government source informed Business Standard that Mobis India would have suffered damage to the tune of around ₹20 crore, as one of its three units near the Hyundai Motor manufacturing facility was affected. At present, Hyundai’s Talegaon unit is unlikely to be hit.
“It was a major fire at the Mobis India unit. It is completely under control now, and there were no human fatalities. As per our assessment, the three units of the company can be valued at around ₹100 crore, and out of that, one unit was affected, leading to a property loss of probably around ₹20 crore,” said a government official.
Kia India’s Anantapur unit in Andhra Pradesh has an annual capacity of around 300,000 units, bringing the daily production level to around 800 units if the plant is running at full capacity. Though both Hyundai and Kia are almost completely dependent on Mobis India for key components, including airbags, audio-video navigation telematics (AVNT) systems and related electronic modules, it is not clear whether M&M is fully dependent on this unit.
Mobis India Ltd is the Indian arm of Hyundai Mobis, the automotive parts and module arm of the Hyundai Motor Group. The company supplies automotive modules, components, service parts and infotainment systems in India. Hyundai Motor said that “alternative sourcing and supply continuity measures are being actively explored to minimise the operational impact”. The alternate plans, according to sources, include bringing auto parts from South Korea and sourcing from the domestic market. Hyundai Motor India also said that “there is sufficient vehicle inventory in our dealer network to take care of customer demand”. Sources aware of the development said that Mobis India and Hyundai Motor are working closely to assess the extent of the damage.
Both Hyundai and Kia together contributed around 17 per cent of total passenger vehicle sales in India in April. The fire broke out around 3.30 pm on Sunday.
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