Coronavirus hits supply of car parts
Tata Motors, Mahindra and Mahindra (M&M) and MG Motor India on Sunday said they were facing challenges in terms of component supply from coronavirus hit-China.
“Because of the unforeseeable challenges on the parts-supply from China, our BS-VI ramp-up has been affected,” Veejay Ram Nakra, chief of sales and marketing, automotive division, M&M Ltd, said. This has resulted in high deceleration in billing volume for February and dealer inventory is now under 10 days, he said.
“Going into March, we anticipate the challenge on parts-supply to continue for another few weeks, before we get back to normalcy,” he added.
Mahindra has reported a 42 per cent decline in sales in February.
Mayank Pareek, president (passenger vehicles business), Tata Motors, said the outbreak of Covid-19 in China and a recent fire incident at one of its strategic vendors affected vehicle production and wholesale volumes.
MG Motor India, too, reported lower retail sales of 1,376 units in February, hit by component supply constraints from China and other locations. The unforeseen coronavirus outbreak has severely affected the company’s European and Chinese supply chains, disrupting its production and impacting sales in February, MG Motor India director (sales) Rakesh Sidana said.
However, car manufacturers such as Maruti Suzuki, Hyundai and Toyota Kirloskar Motor do not see any immediate impact on their production because of the disruption in supply from China even as they continue to monitor the situation closely.