THE GOOD FIGHT
IT NOW SEEMS LIKE A LIFETIME AGO, BUT it has been just over a month since the nationwide lockdown was imposed in light of the Covid-19 pandemic. Just a few days before it was announced, news of the virus spreading in India was afloat but the country and its people didn’t seem to fazed by the whole thing. Work was going on as usual, offices were running and heck, even we were gallivanting about creating content for the April issue of the magazine. But then the virus came too close for comfort. Pune was developing in to the hotspot it is now, and Maharashtra’s chief Minister announced a lockdown in Mumbai and Pune on March 20, a few days before the national one. It was a mad scramble to get the issue ready – we managed to wrap it up in time but by the time it was printed, there was no way to distribute it and we settled on giving out the issue for free.
The effects of the lockdown, and of covid-19 are massive. The economy is facing a challenge like never before. The automotive industry is hugely affected too, especially since this happened right at the cusp of the BS4-BS6 switch. The industry has a lot at stake. Right from suppliers, to dealers, to customers and even the communities in which they operate – carmakers have a lot of stakeholders that have been affected by the virus. But they have responded. From work from home policies, to donations and manufacturing of medical equipment to help out at this time of crisis, carmakers across the country and the globe are coming together to help their communities. Here are some of the initiatives that have been taken in India:
Manufacturing medical supplies
Carmakers have access to their production lines and with just a few tweaks, many of them were getting down to manufacturing essential supplies for frontline workers. At this point of time, we can never have too many ventilators or Personal Protective Equipment (PPE) for medics and carmakers are pitching in. Anand Mahindra was one of the first to announce that the company will have a proactive role in the fight against this pandemic. Soon after, Pawan Goenka tweeted out a gameplan on how the group will engineer and manufacture ventilators at a more affordable cost to deal with the shortfall. Within just 48 hours of his
tweet, they had a working product prototype and after 18 days had added 20 machines that were going through rigorous testing and simulation, ready to be put to active use. Mahindra is also using its agrochemical business to produce hand sanitisers.
Ferrari was caught at the European epicentre of the covid-19 outbreak, and had to shut down its factory rather early on. However, it is helping fight the coronavirus crisis by producing respirators and protective masks. The Italian automaker is also producing thermoplastic valves and fittings at its plant in Maranello using 3D printing. Even Lamborghini is also manufacturing protective equipment such as surgical face masks and protective plexiglass visors for healthcare professionals.
Back in India, the largest car makers, Maruti Suzki and Hyundai have started making ventilators, facemasks and PPEs while other carmakers are contributing as well. Skoda Auto Volkswagen Private Limited has also started to produce face shields at its Chakan and Aurangabad factories and have already supplied 9000 units. In addition to this, it is supplying intubation boxes, while also prototyping an AMBU bag and has used 3D printing to modify masks from Decathlon in to filtered masks for healthcare workers. Toyota India is producing face shields at its manufacturing facility for healthcare workers and law enforcement agencies in Karnataka, via its suppliers Stumpp Schuele & Somappa Springs. Along with Mahindra, Jawa has utilised its Pithampur plant in Madhya Pradesh to manufacture face shields too, while TVS is evaluating collaborating with 3D printing companies to make ventilators to help support hospitals.
Donations
While some manufacturers have not been able to respond by manufacturing medical supplies, they are pumping crores and crores of rupees in donations to those who can. They are also getting deeply involved in the communities in which they operate. Headlining them all has to be the Tata Trust that has committed `1000 crore towards the fight against coronavirus. Ratan Tata has also committed an additional `500 crore towards the manufacturing of respiratory systems, testing kits, and setting up modular treatment facilities as well as the training of healthcare workers. The Tata Trust has also been airlifting critical supplies including PPE kits, surgical masks, and gloves worth `150 crore to be deployed across the country.
Other manufacturers have been contributing in every way they can. Honda Cars has pledged `11 crore to the central and state government for relief efforts, and has also sourced and supplied 2000 units of engine-powered high-pressure backpacks sprayers to various government agencies to help with disinfecting public areas. Ford India has committed to contribute to the Prime Minister’s relief fund and has raised aid worth `7.68 crore. Hyundai Motor India, via its Corporate Social Responsibility (CSR) arm, Hyundai Motor India Foundation, has contributed `5 crore to the Tamil Nadu Chief Minister’s relief fund. Additionally, Hyundai has also imported and handed over diagnostic kits worth `4 crore from South Korea to help test over 25,000 individuals. BMW India has pledged `3 crore, and is setting up isolation wards for patients at the government general hospital near its plant in Chengalpattu, in Tamil Nadu. It has also provided critical care equipment like PPEs for medical facilities in Delhi NCR and Chennai. BMW has also set up a food nutrition fund for the families below the poverty line. Kia Motors India has contributed `2 crore for relief efforts towards the Andhra Pradesh Chief Minister’s Relief Fund. Meanwhile, Force Motors has tied up with the Panchshil foundation to distribute Personal Protective Equipment (PPE) kits to hospitals handling covid-19 patients in Pune. A total of 15,000 kits will be distributed.
More monetary aid has been raised by the likes of MG Motor India, as it will contribute `2 crore in the form of gloves, masks, ventilators and other medical equipment as required to hospitals in Gurugram and Halol, out of where it operates. It is also providing insurance cover for its 5000 employees around the country, while making a fleet of 100 Hectors available for frontline workers replete with fuel and a driver, something that Mahindra has been doing with its ride sharing platforms as well. MercedesBenz has set up a temporary hospital facility with isolation wards with a capacity of up to 1500 patients, and has also donated ventilators to Ruby Hall Clinic in Pune. The company is also supporting 1600 families from Khed and Viman Nagar by providing dry rations and cleaning kits. In addition to the manufacture of medical equipment, Skoda Auto Volkswagen India has donated `1 crore to Sassoon Hospital, Pune, for setting up a 1100 bed facility. Along with this, the company has also imported medical supplies via its subsidiary. The company has also donated 35,000 sanitisers to Sassoon General Hospital, Pune, Kasturba Gandhi Hospital in Mumbai and the Government Hospital in Aurangabad. The company has also distributed over 50,000 food packets in and around the Aurangabad region. Toyota has also announced a donation of `2 crore to the Karnataka government and has distributed 1000
essential kits to daily workers that include sanitiser and face masks. Additionally it has deployed 14 of its buses to help the healthcare department move around in the city.
Motorcycle manufacturers have no small part to play either. Bajaj Group has pledged an amount of `100 crore to support the upgradation of healthcare infrastructure and other initiatives like providing food and shelter as well as economic aid in rural areas. The group has also identified private sector hospitals that can use new upgraded equipment, including ventilators and personal protection equipment along with new testing facilities and isolation wards. Meanwhile, Hero has pledged close to `100 crore, half of which will go to the Prime Minister's relief fund, with the remaining to be utilised for other relief activities. Hero has also set up distribution for 100 ventilators to hospitals, and has also donated over 60 custom-made motorcycles, converted to operate as mobile ambulances. It is also distributing more than 10,000 meals
to daily wage workers and stranded labourers at Delhi NCR, Neemrana in Rajasthan, Haridwar in Uttarakhand, Chittoor in Andhra Pradesh and Halol in Gujarat, as well as distributing ration kits to families in Delhi, Maharashtra, and Kerala. TVS, in addition to manufacturing medical equipment, is providing cooked meals to those frontline healthcare workers from its factory canteen. The group has also purchased and supplied 10 tractors fitted with disinfectant spray to the Hosur municipal corporation.
Customers and Dealers
At the same time, carmakers also see the need to protect their customers and dealers. Most manufacturers including Audi, Honda, Ford, Kia, Maruti Suzuki, Volvo and Yamaha have announced extended warranty packages and service plans for cars that had their warranty expiring during the lockdown period — all subject to their own set of terms and conditions, of course. In addition to this, they have announced packages to help their dealers as well — Honda Cars India is releasing advance payments to its dealers to help them stay afloat during these difficult times. The Japanese manufacturer has also cleared all pending payments to its dealers as of March. Meanwhile Toyota has extended its support to its dealers in the terms of a restart manual that includes a standard operating procedure (SOP) for once they resume business operations. They have also assisted dealers in terms of financial assistance that will help dealer partners to sustain themselves between 38 to 75 days, including claim settlements, offsetting monthly payments, claiming vehicles in transit, relief from interest on inventories and additional incentives. Maruti Suzuki has tapped in to its vast database of 25 million customers and has sent out SMSes to inform them on tips to protect their vehicle during the quarantine period. Meanwhile, some manufacturers including BMW, Mercedes-Benz and Tata Motors have taken the entire buying experience online so you don’t even need to visit a dealership if you want to buy a car.
How the auto industry will pick up after the lockdown passes is yet to be seen. Some argue that the lack of disposable income will affect it badly, however trends in China show that people are back in dealerships. Whether this is because they now feel public transport is a risk or because a pandemic like this makes you realise that you should be allowed to indulge yourself occasionally — we are uncertain. However, until then, the industry has come together to help the nation pick up the pieces in its time of need.L