COVID SPIKE FORCES HYUNDAI TO STOP OPERATING CAR PLANT IN INDIA

Hyundai Motor Co., South Korea's biggest carmaker, said Tuesday, May 25, 2021, it will temporarily suspend its Indian plant due to the rapidly spreading coronavirus pandemic, Yonhap News Agency reported.

Hyundai Motor will halt the Indian plant in the southern state of Tamil Nadu for five days starting Tuesday, a company spokesman said over the phone. The decision came after two workers were infected with COVID-19 and several workers staged a sit-in at the plant Monday amid rising virus fears among workers.

Tamil Nadu is one of the worst-hit states in India. The state has imposed a lockdown on factories, except for some plants, until the end of May.

The carmaker’s other plants overseas are operating despite the ongoing global chip shortage, a company spokesman said.

On the domestic front, Hyundai has temporarily halted some of its domestic plants in recent weeks due to semiconductor shortages.

Hyundai has seven domestic plants -- five in Ulsan, one in Asan and one in Jeonju -- and 10 overseas plants -- four in China and one each in the United States, the Czech Republic, Turkey, Russia, India, and Brazil.

Their combined capacity reaches 5.5 million vehicles. On Monday, its affiliate Kia Corp. said it plans to suspend its Georgia plant on Thursday and Friday due to a chip shortage, following a two-day suspension last month.

Kia has also temporarily suspended some of its domestic plants due to parts problems. Kia has eight domestic plants in Korea and seven overseas ones -- three in China and one each in the United States, Slovakia, Mexico, and India.

Their overall capacity is 3.84 million units per year. Hyundai and Kia together form the world's fifth-biggest carmaker by sales.

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