Daimler India shuts bus and truckmaking unit for three days

By Sudarshan Varadhan and Aditi Shah

CHENNAI (Reuters) - Daimler's Indian plant has shut its bus and truckmaking unit for three days because of parts shortages caused by lockdown restrictions across the country, a company spokesman said on Tuesday.

"Daimler India Commercial Vehicles (DICV) has declared a non-production day for June 1 'til June 3, 2021, due to temporary parts shortages caused by lockdown restrictions," the spokesman said in a statement.

The plant is the first near India's Chennai automotive manufacturing hub to order a temporary shutdown owing to a parts shortage. Global carmakers such as Ford Motor Co, Hyundai Motor Co and Renault-Nissan ordered closures last week because of worker protests over safety.

India's factory activity growth slowed significantly in May as rising coronavirus cases curbed new orders and output while scarcity of raw materials drove up input costs, a private sector survey showed on Tuesday.

Daimler said it is supporting its employees with its health programmes, adding that it will pay workers their full salaries for the non-production period.

DICV is unit of Germany's Daimler group and manufactures and sells trucks, BharatBenz buses and Mercedes-Benz coaches in India.

The company's plant near Chennai also produces for Daimler truck brands such as FUSO, Mercedes-Benz and Freightliner, exporting to more than 60 markets around the world.

(Reporting by Sudarshan Varadhan; Editing by David Goodman)