SML Isuzu has announced that it will temporarily suspend production at its manufacturing plant in Punjab. The plant shutdown will be extended till June 11 and the commercial vehicle maker has cited supply issues and lower demand as the reasons. The company is facing major supply and demand issues as several states are under partial lockdown owing to the second wave of the COVID-19 pandemic. SML Isuzu gets a huge business from school buses and has been facing shortage in this segment as schools have remained closed for over a year now.
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SML Isuzu is facing major supply in demand issues as several states are under partial lockdown owing to the second wave of the COVID-19 pandemic.
In a regulatory filing on the Bombay Stock Exchange (BSE), SML Isuzu said, "Due to the ongoing pandemic situation and lockdowns enforced in most of the states, the company is still facing supply issues from some of its vendors/suppliers. Further, demand for commercial vehicles has been adversely impacted especially for the school buses due to non-opening of schools/educational institutions. In view of the above situation, the company has decided to temporarily suspend production at its manufacturing plant located at Village Asron, Distt. Shahid Bhagat Singh Nagar, Punjab, up to June 11, 2021 (Friday)."
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SML Isuzu has also said in the filing that it is closely monitoring the situation and taking appropriate actions as required. Overall, the commercial vehicle market has been witnessing a slump in sales since last year when the nationwide lockdown was announced. The demand for CVs continues to deteriorate as major construction work and other shared mobility services in majority of the states were stopped when the second wave of COVID-19 hit India.
