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The Economic Times
The Economic Times

Hyundai's Chennai plant resumes operations after fire, targets full recovery by June 22

Hyundai Motor India said on Wednesday that its Chennai plant is gradually returning to normal operations after a fire at a key supplier's facility disrupted the supply of automotive parts earlier this month.

Full normalisation of manufacturing operations is expected by June 22, it said.

In an exchange filing on Wednesday, the automaker said the impact has been largely limited to its Chennai Plant 1, while production at its Pune facility and Chennai Plant 2 has continued without major interruptions.

The company has been sourcing parts from alternate locations to ease the disruption and expects Chennai Plant 1 to regain its usual production pace by June 15.

The disruption was triggered by a fire at the manufacturing facility of supplier Mobis India Ltd., which temporarily affected the availability of components used by Hyundai.

Hyundai further said it is still assessing the overall impact on operations but expects most of the production lost during the disruption to be recovered in the next quarter.

The auto giant also sought to reassure investors and customers that vehicle sales are unlikely to be affected in June, citing sufficient inventory across its dealer network.

The disruption was triggered by a major fire on June 1 at the Sriperumbudur manufacturing facility of supplier Mobis India Ltd., near Chennai.

The blaze reportedly originated in the plant’s scrap yard before spreading to two units within the facility, taking fire and rescue personnel nearly four hours to bring under control.

Because the incident occurred on a Sunday, no casualties were reported.

Mobis India is a critical partner for the group, supplying vital automotive systems including chassis, cockpit, and front-end modules, alongside advanced mobility, autonomous driving, and electrification technologies.

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