Coronavirus Outbreak Likely To Hamper Production In Auto Industry: SIAM

The auto industry in India too has been importing goods from China, in fact many automakers in India import about 10% of their raw materials from China.

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The outbreak of the coronavirus has started to take its toll on all industries especially those who have a base in China. China being an export hub for most manufacturers, the lockdown because of the COVID-19 virus outbreak has had a significant impact on most industries. The auto industry in India too has been importing goods from China, in fact many automakers in India import about 10% of their raw materials from China. The disruption in availability of these parts are likely to critically hamper production across all segments may it be passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and of course electric vehicles.

Rajan Wadhera, President, Society Of Indian Automotive Manufacturers, said that with the anticipation of the Chinese New Year, the Indian Auto Industry had maintained inventory in the beginning of the year, but with the current lockdown in China, supply for BS6 vehicles is likely to get impacted.

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Manufacturers are exploring alternatives to fulfil their supply chain demands but that would take a substantial amount of time to reach stable production scale as these components would need regulatory testing. SIAM has been in touch with the Government of India with specific recommendations on behalf of the Auto Industry and the government has been responsive to the demands of the industry

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