Virus Impact on Automotive Industry

I appreciate your inputs given in the cover story titled ‘Q3FY20 – A Mixed Bag’ wherein you have mentioned how the automotive sector has been affected by the BS-VI norms. It was very useful. I would like to know your view on the impact of the recent virus crisis in China on this sector.

- Prasad Mukherji 

Editor Responds : Thank you for your appreciation. As far as your query goes, there is certainly a negative impact expected on this sector. The Indian automotive sector sources 27 per cent of its components from China. If the shutdown in production persists for a few more weeks, the potential supply disruptions are likely to be more pronounced as Indian original equipment manufacturers (OEMs) are currently transitioning to BS-VI production. The impact will be more profound in the commercial vehicle, passenger vehicle and two-wheeler segments. Hope this information helps. Keep writing to us with your queries!