Spare Parts Shortage For BS6 Cars In India After China’s Coronavirus Outbreak

The lack of parts and raw material supply from China poses a challenge for Indian carmakers, who are struggling to maintain production volumes of BS6 cars. About 10 per cent of raw materials used to build cars come from China, where the coronavirus has wreaked havoc on the country’s manufacturing sector and international trade. 

Indian carmakers have had a tough 2019. Mid-year, there was a significant slump in demand. This, coupled with the expensive switch to BS6 and new vehicle safety norms had major financial consequences for car companies in India. Could the COVID-19 outbreak indirectly maim a recovering industry?

Coronavirus has adversely affected the global economy. More than 1.2 lakh people have been diagnosed with the virus around the world. The Wuhan province in China was the epicentre for the virus outbreak. COVID-19 has now spread to every continent in the world. 

After more than 3,000 reported fatalities, China is finally resuming industrial production. Manufacturing hit a historic low in the country last month as swathes of workers were sent home to abate the spread of the disease. 

From passenger cars to commercial vehicles, the entire automotive industry is feeling the heat. Indian carmakers had stocked up for BS6 production in anticipation of the Chinese New Year. However, the socio-economic situation in China in the past three months has impacted the supply chain, a change which will take time to stabilise as carmakers look to other parts suppliers. 

Electric vehicles (EVs) are likely to be the most adversely affected. Although Indian automotive companies have localised the production of control units to an extent, India is still dependent on China’s lithium-ion battery manufacturing. 

In response, the Indian government has issued a force majeure about the coronavirus. Customs will clear shipments around the clock in the country. 

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