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Vehicle production across all categories may be critically hampered amid lockdown in China: SIAM

Indian automakers import about 10 per cent of their raw materials from the virus-affected nation.

Vehicle production across all categories may be critically hampered amid lockdown in China: SIAM

Automobile

Highlighting the impact of the ongoing lockdown in China due to the Coronavirus outbreak, auto industry body SIAM on Wednesday said that the vehicle production across all categories is likely to be critically hampered, as majority of Indian automakers import about 10 per cent of their raw materials from the virus-affected nation.

SIAM president Ranjan Wadhera said that country’s auto industry had maintained their inventory in anticipation of Chinese New Year holiday but the lockdown caused by the spread of Coronavirus may postpone the plans of supplying BS-VI vehicles.

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The Society of Indian Automobile Manufacturers said disruption in the availability of these parts is likely to critically hamper production across all segments including passenger, commercial vehicles, three-wheelers, two-wheelers – and is gravely affecting electric vehicles.

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“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,” he added.

SIAM has been in touch with the government with specific recommendations on behalf of the auto industry, he added.

(With input from agencies)

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