Automotive companies that have no prior experience in the healthcare sector are stepping up the COVID-19 challenge and setting up makeshift and permanent hospitals and other healthcare units. Changes made by the government which allow corporates to use their CSR funds for setting up hospitals have expedited relief efforts. More on this later in the copy but first here is a complete wrap of what made headlines in the automotive space this week.
Tata Motors' bereavement support to COVID-hit families
Tata Motors will pay 50 percent of the basic salary every month to the family of employees who succumbed to COVID-19 till the age of retirement. The payment will be in addition to a one-time payout the family gets as immediate relief.
Tata Motors has so far lost 47 employees to COVID-19 since the start of the pandemic last year. The company is one of the biggest employers in the automotive space in India running multiple plants that make cars, SUVs, vans, mini trucks, medium and heavy-duty trucks and buses.
Royal Enfield to recall 2.36 lakh bikes
Eicher Motors-owned Royal Enfield said on Wednesday it will recall 236,966 motorcycles across some models due to defects in the ignition coil that can cause misfiring and reduce the vehicle's performance.
Royal Enfield is an iconic brand in India, the world's biggest motorbike market, with a dedicated fan-following for its range of cruisers and classic-looking motorcycles.
Tata Motors doubles capex for FY22
Tata Motors has lined up up to Rs 3,500 crore capital expenditure for FY22 for its India business following a sustained multi-quarter rise in sales especially for its SUVs and cars where its dealers are struggling to meet retail demand.
The outlook on capex for FY22 marks a massive jump from the guidance provided in previous quarters for FY21 which was supposed to be in the vicinity of Rs 1,500 crore for the India business unit.
Hero to make big bikes under own brand
Hero MotoCorp proposes to have high-end bikes under its own brand developed alongside machines that are being made for Harley-Davidson, marking the start of its biggest-ever bet in the premium motorcycle segment.
Following the arrangement with the iconic American cruiser maker announced in October 2020 to develop mid-capacity bikes for Harley, it is now learnt that the Munjal family- promoted Hero MotoCorp would have bikes with the same capacity for the Hero brand as well.
Auto companies erect hospitals to treat COVID-19 patients
Despite no experience in the medical field, automotive companies have erected several hospitals to treat patients of COVID-19 in areas where they have their production facilities.
Maruti Suzuki, Bajaj Auto, Hero MotoCorp, Omega Seiki Mobility are some of the auto companies that have opened COVID-dedicated hospitals over the past few months. These hospitals, some of which are temporary in nature, have been set up through partnerships too.
For instance, Maruti Suzuki, India’s largest carmaker, set up a 50-bed (can be expanded to 100 beds) multi-speciality hospital in the Ahmedabad district in Gujarat, in partnership with Zydus Hospitals.
With a total capital expenditure of Rs 126 crore, the hospital has been 100 percent funded by the Maruti Suzuki Foundation – a CSR initiative of Maruti Suzuki. The hospital will be managed and operated by Ramanbhai Foundation, the CSR arm of Zydus Group.
During the first wave, Pune-based Bajaj Auto started a 32-bed facility at its Akurdi plant that operates from eight buildings and provides free treatment by trained medical personnel. This was in addition to its other COVID centres in Waluj (200 beds), Chakan (16-bed) and Pantnagar (15-bed).
The Waluj centre has been set up under the aegis of Kamalnayan Bajaj Hospital. This COVID care centre began as a 36-bed facility in June 2020 and has since been expanded to a 200-bed facility. It was started for Bajaj Auto’s workers and their families but now serves not just its employees but also the community around the plant. More than 1,140 patients have recovered at this facility.
Hero MotoCorp, the country’s largest two-wheeler maker, is working on setting up a 100-bed temporary hospital in Gurugram. Honda Motorcycle and Scooter India (HMSI) is also said to be working on inaugurating a 100-bed temporary hospital.
Omega Seiki Mobility, an electric two-wheeler making company, recently opened a dedicated COVID-19 oxygen hospital at Sanjay Colony, Faridabad. The hospital has 50 beds presently and can be expanded to 250 beds in the need arises.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
