Chennai Floods: Royal Enfield Suffers Loss of 11,200 Units
Highlights
Royal Enfield has suffered production loss of 11,200 motorcycles so far due to heavy rains and flooding in Chennai. In the first week of December itself, Royal Enfield suffered production losses of 7,200 motorcycles.
"Due to heavy rains and flooding in Chennai, both of Royal Enfield's production facilities in Thiruvottiyur and Oragadam were shut since the December 1, 2015. We resumed production of motorcycles on December 7, 2015. However, due to a high rate of absenteeism by our employees, and issues with our local suppliers - we will be running at approximately 50 per cent capacity this week, and plan to be back up to 100 per cent capacity by next week," a company spokesperson said in a statement.
Last month, the company lost production of 4,000 motorcycles due to inclement weather in Chennai, Royal Enfield had said in a statement issued last week. All Royal Enfield offices and factories were shut down after the floods in Chennai.
"Prima facie, there is no damage to equipment or property and all our employees are safe and secure. We have had production loss of 7,200 motorcycles due to the closure of both our manufacturing facilities between December 1- 6, 2015. Many parts of the supply chain still continue to be affected due to the aftermath of floods," he added.
Also Read - Chennai Floods: Automotive Hub May Rack Up $2.2 Billion in Losses
Royal Enfield continues to monitor the situation closely and the statement added that actual insurance loss can only be ascertained once "full normalcy is restored".
Last Updated on December 9, 2015
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- Chennai Floods: Royal Enfield Suffers Loss of 11,200 Units