There will be a material impact on vehicle financers’ asset quality due to the second covid wave, according to a report by India Ratings and Research (Ind-Ra).

A top official of JK Tyre and Industries confirmed that there is a Capex plan of around Rs 2 billion to be spent on the maintenance and debottlenecking of all the plants in FY 22 to increase operational efficiency.

With the second wave of coronavirus, the auto sector has been hit hard. Many major manufacturers have declared production shutdowns and are occupied with the current medical crisis in the country.

The company has undertaken a Block Closure from May 18 to May 22 due to the rise in COVID-19 cases in the state. The company will use the time to conduct its annual maintenance activities.

Research by CRISIL shows that the centre’s scrappage policy might not have many freight transporters replacing old vehicles with new ones. The scrappage volume of buses, two-wheelers and passenger vehicles will be limited.

Lumax Group is investing Rs 2.5 billion in capital expenditure for an electronics plant in Haryana and has augmented capacity at the Sanand plant in Gujarat. The Lumax-DK Jain Group supplies auto parts to its 33 plants.

Adhering to the Maharashtra government’s directives intending to contain the COVID crisis in the state, Bosch announced the shutdown of its Nashik plant till the end of next week.

Though awareness about electric vehicles (EVs) is rising, range-anxiety is affecting widescale adoption of EVs. To address this, 48V electrical systems could be the instant and a simple solution, says Anurag Garg of Vitesco Technologies India.

The top auto players anticipate challenges in the areas of dealership activity, supply chain and customer movement. Analysts expect the impact of the second wave on the auto sector to be considerable.