Production of Hyundai Motor India’s bestselling SUV Creta has been disrupted after a fire at the facility of supplier and group company Mobis India affected the availability of key components.
According to two executives aware of the development, Hyundai has started making alternative sourcing arrangements to minimise the impact on production.
The disruption has affected operations at one of Hyundai’s two manufacturing plants in Chennai.
According to one executive, daily output at the affected Chennai plant has fallen to nearly 200 vehicles from more than 1,000 earlier.
Mobis India supplies audio components and several other automotive parts to Hyundai Motor India.
The company said production at its other Chennai facility and its Pune plant in western India remained “largely unaffected”.
Hyundai Motor India said on Wednesday that the affected Chennai plant is expected to resume normal production by June 22 following the fire incident at the Mobis India facility last week.
The company added that it expects to regain “production pace” at the plant by June 15.
Hyundai also said most production losses caused by the disruption are expected to be recovered within the next quarter.
Despite the temporary disruption, Hyundai said it does not expect any significant impact on its retail sales during June.
The company cited adequate inventory levels available across its dealer network as a key reason for maintaining supply continuity.
The fire incident had earlier triggered concerns about possible disruptions in Hyundai’s supply chain, particularly for the Creta SUV, one of the company’s highest-selling models in India.
