City
Epaper

COVID-19: Supply chain distribution to hamper auto production

By IANS | Updated: March 11, 2020 15:05 IST

The auto part supply chain disruption due to the lockdown in China over the novel coronavirus (COVID-19) outbreak is expected to critically hamper India's automobile production across all segments, the Society of Indian Automobile Manufacturers (SIAM) said on Wednesday.

Open in App

New Delhi, March 11 The auto part supply chain disruption due to the lockdown in China over the novel coronavirus (COVID-19) outbreak is expected to critically hamper India's automobile production across all segments, the Society of Indian Automobile Manufacturers (SIAM) said on Wednesday.

According to Rajan Wadhera, President, SIAM, many automakers in India import about 10 per cent of their raw materials from China. Consequently, the disruption in availability of these parts are likely to critically hamper production across all segments, namely passenger vehicles (PV), commercial vehicles (CV), three-wheelers (3W), two-wheelers (2W) and electric vehicles (EVs).

Furthermore, Wadhera emphasised that with anticipation of the Chinese New Year, the industry had maintained an inventory at the beginning of the year, but with the current lockdown in China, supply for BSVI vehicles is likely to get impacted.

"Manufacturers are exploring alternatives to fulfil their supply chain demands but that would also take a substantial amount of time to reach stable production scale as these components would need regulatory testing," Wadhera was quoted as saying in a statement.

Additionally, he said that SIAM has been in touch with the Centre with specific recommendations on behalf of the auto industry.

( With inputs from IANS )

Open in App

Related Stories

InternationalUN chief Antonio Guterres condemns deadly attack on UNIFIL, calls for ceasefire respect

InternationalIranian Parliament Speaker Ghalibaf says all enemy plans failed, including Strait of Hormuz opening

Politics"PM spoke not as head of govt but as a campaigner": Congress MP Renuka Chowdhury

InternationalIran's Parliament Speaker Ghalibaf reveals Hormuz standoff, warns US minesweeper was close to being targeted

InternationalNo fresh comment from Trump on Hormuz closure; holds talks with top officials, then heads to golf

कारोबार Realted Stories

BusinessCentre approves 20 lakh MT potato procurement in Uttar Pradesh

BusinessLibya unified budget wins global backing

BusinessIndia projected to grow at 6.8 pc in FY27, can become transit hub for global tourists

BusinessRajnath Singh-led 4th IGoM reviews West Asia developments; calls situation 'uncertain and volatile'

BusinessNepal govt's move to control purchases from bordering Indian towns draws flak