Coronavirus hits global auto sector\, impacts India

Coronavirus hits global auto sector, impacts India

The Coronavirus outbreak in Wuhan province, China has hit the global automotive industry with many OEMs suspending production in their factories and facing disruption in the supply chain.

Published: 08th February 2020 04:02 AM  |   Last Updated: 08th February 2020 01:30 PM   |  A+A-

Express News Service

NEW DELHI: The Coronavirus outbreak in Wuhan province, China has hit the global automotive industry with many OEMs suspending production in their factories and facing disruption in the supply chain.
Its impact is now felt by automakers in India as Suzuki Motor Corp, its India unit Maruti Suzuki that controls 50 per cent of the domestic PV  market, on Friday said it was considering sourcing vehicle components from outside China as it threatens to disrupt vehicle production in India. Till now India’s auto industry has maintained that it would have minimal disruption due to continuous focus on localisation. Auto experts, however, said if the crisis deepens then India’s Auto Inc might face problems. 

“A lot of OEMs and suppliers in India are dependent on China for components. As of now, most of the companies in India maintain a decent component inventory but if the virus crisis deepens to two-three months and governments take severe measures, then there would be setback for the country’s auto industry,” Puneet Gupta, associate director, IHS Markit told this publication. 
China makes more cars and auto components than any other country in the world.