India
The operations of domestic automobile manufacturers may get further impacted if the lockdown in several cities of China, including Shanghai, to check Covid-19 infections gets prolonged.
The global semiconductor shortage has already forced original equipment manufacturers (OEMs) to take production cuts. The supply chain disruptions due to multiple Covid-19 waves and the recent Russia-Ukraine war have not helped the matter either.
Honda Motorcycle & Scooter India president, MD and CEO Atsushi Ogata recently told FE that the company is witnessing some impact on the production of a few of its models, which use smaller chips imported from China, as activities have been suspended at the Shanghai port.
A Tata Motors spokesperson said that the automobile industry, in particular, continues to struggle with a global shortage of semiconductors, and while there is improvement in recent months, it remains uncertain in the short term.
Saket Mehra, partner and auto sector leader, Grant Thornton Bharat, said as Chinese imports cater to the Indian automobile, steel and electronics sectors, any lockdown will result in a direct impact on these sectors.
Suraj Ghosh, director, S&P Global, told that if the lockdown curbs persist and normal production does not start in the next few weeks, India’s auto industry will be at risk of production hits, as several electronic components and sub-components are sourced from China.
Source: Express Drives
Image Source: Google Images
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