Automobile supply chain affected by heavy Chennai rains

Severe rains in Chennai have greatly impacted the deliveries, supply chain and logistics for leading automobile companies


Roads in Chennai have been severely deluged and this has severely impacted logistics, thereby making it tough for delivery vans and trucks to reach their factories within time. Companies like Hyundai and Ford are set to witness delays in shipments owing to this situation. A Ford spokesperson talked of how the logistics team is looking into delivery lags owing to the torrid situation in Chennai.


According to the senior Vice President at Hyundai Motor India, Rakesh Srivastava, logistics challenges have been posed by the severe rains and vehicle deliveries have been delayed. However, employees have taken care to ensure that production is not affected by taking necessary collaborative steps with supply chain associates and vendors. Vehicle transportation from factories to dealerships and exports has been equally affected according to him.


Renault-Nissan and Ford had no choice but to shut down their plants for a couple of days last week. However, according to a Renault-Nissan spokesperson, the company still remains optimistic about meeting delivery timelines. Till date, the company has not seen any damages to its warehousing, facilities or plant and hence it is following up with its suppliers for confirming the status. Impact on part or vehicle deliveries to customers would be negligible according to him.


Suppliers of crucial components to automobile companies are facing a tight situation owing to huge water logging. The Ambattur Industrial Estate, one of the most renowned and biggest industrial zones in western Chennai was heavily waterlogged for more than a week. The situation is quite similar for other manufacturing units of automobile parts.


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