Major automobile manufacturers Maruti Suzuki, Hyundai and Toyota Kirloskar Motor do not see any instant affect on their production schedules because of disruption in provide of components from plants located in coronavirus-hit China.
The companies, alternatively, continue to monitor the situation closely, particularly the operations of their major suppliers, with a view to face any adverse situation that crops up at some point.
“We don’t foresee any problem as of now. We can keep up a correspondence with our suppliers and will notify whether there is any issue”, a Maruti Suzuki India spokesperson told PTI when contacted over the issue.
A Hyundai Motor India spokesperson said, “We are closely monitoring the situation. Then again, at the present time there is not any affect on the functioning of the company.”
In a similar fashion, Toyota Kirloskar Motor (TKM) said there was no instant affect so far on provide of parts and its production from the outbreak of coronavirus in China.
“Our tier-I and tier-II suppliers don’t seem to be yet effected. Then again, we are frequently monitoring the operations of tier-III and tier-IV suppliers to grasp any imaginable slowdown that may come forth because of the slowdown in logistics waft in China, particularly Wuhan,” TKM Senior Vice President (Sales and Service) Naveen Soni said.
The company specializes in increasing the provide base through localisation of parts and components, thereby providing an possibility for native suppliers, he added.
TKM remains dedicated to effectively contribute towards government’s ‘Make in India’ mission, and has developed a global supplier base and provide chain in India in a period of 20 years, Soni said.
“These localisation efforts have also ensured a smooth transition of our manufacturing plant to 100 per cent BS-VI manufacturing facility from January 2020 without any remarkable provide roadblocks. Concurrently, our dependency on multi-sourced parts has allowed us flexibility of sourcing from other countries when China has an affect,” he added.
Kia Motors India said its production has also remained unaffected so far.
“The coronavirus hasn’t impacted us till now, but we are maintaining a tally of the development for gauging the future affect,” a company spokesperson said.
MG Motor India, alternatively, reported disruption in provide chain which impacted its production and sales performance in February.
“The unexpected coronavirus outbreak has severely affected our European and Chinese provide chains, disrupting our production and impacting our sales in February and will continue through March,” MG Motor India Director Sales Rakesh Sidana said.
The company is working towards stabilising the situation and is hopeful that fair normalcy will be restored by the end of March, he added.
Tata Motors declined to remark on the issue, but its CEO and Managing Director Guenter Butschek had earlier this month said that clarity approximately provide constraints of components from China will only emerge when workers in the coronavirus-hit country rejoin work.
The company imports sure components for both Nexon EV and other traditional models from China.
Auto industry body Society of Indian Automobile Manufacturers (SIAM) had earlier said that it’ll collect information and data from its members to understand whether there could be disruptions, and to what extent, whether any.
Two-wheeler makers Hero MotoCorp and TVS Motor Company had said earlier this month that coronavirus (COVID-19) outbreak in China would hit their production by around 10 per cent in February.
Citing disruptions in automotive provide chains because of coronavirus outbreak, rating agency Moody’s has already lowered its global auto sales forecast.
In a similar fashion, the Organization of Indian Forging Industry (AIFI) said that disruption in supplies because of the coronavirus outbreak in China has hit domestic forging industry along side automobile and auto component manufacturing sectors.
The domestic automobile industry, which has been riding through the worst slump in two decades, is likely to be negatively impacted and its provide chain disrupted whether the coronavirus outbreak in China and South-East Asia persists longer, rating agency Icra had said final week.
Around 3,000 people have missing their lives in China because of the disease so far.
Cases of coronavirus have also emerged in quite a lot of other countries, including South Korea, Japan, Iran, Italy and Singapore.