The major outbreak of the epidemic Coronavirus or you may say CODIV-19 has become a major issue to get concerned about. People across the world are dying at an alarming rate. Since its outbreak, it has been predicted that the automotive industry in India will suffer a huge loss. The prediction is quite appropriate and will be a major turning point in the history of the automotive industry in India. Tata Motors Ltd. had recently stated its problems. The supply chain from China had severely affected by the production rate in the company.
Why India’s automotive industry needs Chinese goods on a large scale?
China supplies more than 80 percent of the parts required for the manufacturing. They supply turbocharger, meter sets, fuel injection pumps, airbag components, steering system components, LEDs, magnets and other parts of the vehicle. The OEM (Original Equipment Manufacturer) of India are very less. Hence, the Auto supply chain depends on China’s manufactured products.
Which types of production of vehicles will be affected due to this cut in supply?
The production of vehicles that will be affected due to the cut in supply of goods from China will be commercial vehicles (CV), passenger vehicles (PV) and two- wheeler vehicles (2W). Commercial vehicles and passenger vehicles are very much important in day to day public transport or in fields like tractors which is actively used during the harvesting season of crops. The two-wheeler vehicles have become quite necessary for hassle-free transport. Both men and women are actively involved in driving it. So their demand rate is always higher. But the implementation of BSVI vehicles has been curbed due to this cut in supply of goods from China. The production of vehicles is also being impacted due to mandatory lockdown for public health.
Why the implementation of BSVI vehicles may be delayed due to production issues?
Due to the cut in supply of the essential production units from China, the BSVI vehicles are not available in the market. This type of vehicle is important in reducing the extreme pollution in the air, as the emission of sulfur is less than the previous one, i.e., BSIV.
What will be the overall impact and what the automotive industry will suffer in the coming days due to the terror of COVID-19?
The total blockage in ports and airports which are used in the transportation of goods between the countries has been completely cut-off, to prevent the spread of Coronavirus.
This will lower the visibility of supply chain and impact production when lockdown is lifted.
How employees of the various industries are suffering?
Companies in the automotive industry are suffering from this epidemic. Employees are now restricted to travel domestically as well as overseas. Airports involve a lot of passengers from worldwide and there is a high chance of getting COVID-19. Hence even after lift of
lock down in countries, the travel may be restricted for some more month. The safety of the employees comes first for any company to run successfully
Why the implementation of BSVI norms are getting delayed?
The recent development of Tata Motors Ltd. to migrate their production to BSVI norms that the Supreme Court has implemented has been disrupted and seems to be impossible now. The transition vehicle from BSIV to BSVI is important for the betterment of the environment
reducing the level of pollution. The level of sulfur content in BSVI fuel is approximately five
times lower than BSIV fuel comparatively. So due to this alarming effect of the virus, this
necessary and important transition is at stake. The sale in passenger vehicles although
increased recently, but due to the disruption in transition to BSVI, it can be affected soon
too.
How disastrously Coronavirus is affecting the national economy?
Mint in India reported that major companies like Tata Motors, Mahindra Ltd and other
leading companies have got affected too for this outbreak. Hence, the lack of imports of
goods from the china & current lockdown scenario can be a major loss for the auto
companies not only in India but worldwide. The effect of Coronavirus is not only killing
humans but also affecting the economy and livelihood of the auto sector employees.