NEW DELHI: Indian automakers are grappling with various headwinds. On 1 hand, the sellers are fearing that they would not be in a position to liquidate the BS-IV stock, on the other automakers are experiencing challenges to develop BS-VI vehicles thanks to a shortage of spare sections provide from China because of Covid-19 outbreak.
The apex industry physique Culture of Indian Auto Suppliers (SIAM) mentioned, lots of automakers in India import about ten % of their raw products from China. The disruption in the availability of these sections is likely to critically hamper manufacturing across all segments, namely Passenger Automobiles (PV), Commercial Automobiles (CV), A few-Wheelers (3W), Two-Wheelers (2W) and gravely impacting Electric Automobiles (EVs).
Speaking about coronavirus effect on the Auto industry in India, Rajan Wadhera, President, SIAM mentioned, “With the anticipation of the Chinese New Calendar year, Indian Automobile Sector had managed inventory in starting of the yr, but with the current lockdown in China, provide for BS-VI vehicles is likely to get impacted.”
“Manufacturers are checking out options to fulfil their provide chain demands but that would also make a sizeable amount of time to arrive at steady manufacturing scale as these parts would want regulatory tests,” reiterated Wadhera.
Wadhera stated that SIAM has been in contact with the Governing administration of India with specific tips on behalf of the Automobile Sector and in this regard, Sector is specially thankful to the Governing administration for issuing a notification of Force Majeure for Coronavirus and also 24×7 clearance of shipments at all customs formations.