Corona Impact on Auto Sector

Corona Virus Impact on Indian Automobile Industry5 min read

Amidst the spread of Coronavirus(Covid-19) in our neighbouring nation China, all category Vehicle production is likely to be obstructed because many Indian Automotive Companies import about 10 percent of their raw materials from China.

The Auto Industry body said disruption in the availability of these parts is likely to critically hamper production across all segments, namely passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and gravely affecting electric vehicles.

Mr. Rajan Wadhera, President, SIAM in a brief statement issued to the Media:

Many automakers in India import about 10% of their raw materials from China. The disruption in the availability of these parts is likely to critically hamper production across all segments, namely Passenger Vehicles (PV), Commercial Vehicles (CV), Three-Wheelers (3W), Two-Wheelers (2W) and gravely affecting Electric Vehicles (EVs).

With the anticipation of the Chinese New Year, Indian Auto Industry had maintained inventory at the beginning of the year, but with the current lockdown in China, supply for BSVI vehicles is likely to get impacted.

Since the manufacturers are exploring other sources of their raw materials supply but that would also make a substantial amount of time to reach a stable production scale as these components would need regulatory testing.

Mr. Wadhera further mentioned:

SIAM ( Saceity of Indian Automobile Manufacturers) has been in touch with the Government of India with specific recommendations on behalf of the Auto Industry and in this regard, Industry is particularly thankful to the Government for issuing a notification of Force Majeure for Corona virus and also 24×7 clearance of shipments at all customs formations.

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