Supply chain distribution to hit auto production

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 said.