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Maruti Suzuki temporarily halts production at Gurgaon Plants

Snapshot: Maruti Suzuki suspends production temporarily due to the fire at Subros Ltd, which supplies air-conditioning kits to Maruti and other automakers in the national capital region.

Country’s largest car manufacturer, Maruti Suzuki halted production at its Manesar and Gurgaon facility in Haryana after a fire at a factory of one of its component makers disrupted supplies. The fire was at the Subros Ltd, which supplies air-conditioning kits to Maruti and other automakers in the national capital region. It was caused by a short circuit in the plant premises and the strong winds that further aggravated the situation.

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Subros Limited is a manufacturer of thermal products for automotive applications in India. Being in technical collaboration with Denso, Subros has two manufacturing plants at Noida, Manesar, Pune, Chennai and Sanand with an annual capacity of 1.5 Million AC Kits per annum and has a well equipped R&D Center and Tool Room at Noida. The Company manufactures compressors, heating, ventilation and air conditioning (HVACs), piping and heat exchangers to suit various vehicle configurations.

Maruti Suzuki said in a statement, “Owing to an unfortunate incident of fire at the Manesar facilities of our supplier, M/s Subros Limited, on Sunday (May 29), supplies of components from that plant have been disrupted. As a consequence, Maruti Suzuki India Limited will have to temporarily suspend manufacture of cars at its facilities in Manesar and Gurgaon, starting second half Monday (May 30). Subros Limited and Maruti Suzuki are jointly assessing the extent of damage to essential equipment. We are also examining the options available to start supply of components from other facilities. Production will resume as soon as components become available.”

After the incident, Maruti Suzuki shares fell 1.58% to Rs. 4,076.00 on BSE, while Subros Ltd’s stock closed 4.89% lower at Rs.88.55, while the benchmark Sensex closed 0.27% higher at 26,725.60 points. The company manufactures around 5,500 vehicles everyday day at its Haryana plants. As it closed on May 30 in the second half, it may have had a production loss of around 2,750 vehicles.

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