Coronavirus spread to impact India’s auto component industry, says body

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The supply restrictions from China caused by the spread of coronavirus, which have started adversely affecting the Indian automobile industry, is likely to have a negative impact on the automotive component and forging industries in India shortly, an industry association has said.

China accounts for 27% of India’s automotive component imports and, this year, vehicle demand in the country is projected to decline by 8.3%, the association added.

S. Muralishankar, president, Association of Indian Forging Industry (AIFI), said, “The Coronavirus is expected to have an impact on the Indian automotive industry and hence also on the automobile component and forging industries, which had already reduced their production rate due to the market conditions and on account of the impending change over to BS-VI emission norms from BS-IV from the April 1, 2020.”

China is one of the leading suppliers of automotive components in India and the slowing supply of components manufactured in China would cause shortage, he said.

As per recent reports, the impact on commercial vehicle (CV), passenger vehicle (PV) and the two-wheeler (2W) segments will be profound.

Currently, the OEMs have reduced their production plan for February and March due to the non-receipt of components, according to reports.

“The problem is further aggravated by the Chinese government's suspension of shipments by sea until further notice and allowing air-only shipments that are not suitable for auto components and forging industries, therefore the Indian OEMs are unable to plan production beyond the inventory as currently available to them,” he said.

Further, the international customers have asked for shipments to be delayed till further advice, as their supply lines too are facing the adverse impact of the disruption caused due to the shutting down of manufacturing facilities temporarily in China, he added.

“The Indian Government has also issued a notification mandating the decontamination of containers at the port prior to release to the Indian Customs,” he said.

“However, the guidelines/procedures to be followed for decontamination have not been notified, therefore it is not possible for the Indian importers to clear consignments that have already reached Indian shores on time,” he added.

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Printable version | Sep 23, 2021 6:27:04 AM |

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