The country’s auto sector which has already been under pressure due to economic slowdown and transition to BS-VI emission is now facing severe headwind since the outbreak of Coronavirus (Covid-19) in China.
Motown is likely to face severe blow due to supply chain disruption if the Coronavirus outbreak persisted longer.
OEMs are currently in the period of transitioning to BS-VI production, disruption in supply of critical components required for the same has the potential to impact smooth transition to new emission norms. OEMs sourcing components such as electronic components, fuel injection pumps, turbo charger, meter sets, LEDs, magnets, airbag components, steering system components and electric vehicle components will be affected the most.
Speaking about the poor show by the auto sector in February, Girish Wagh, President, Commercial Vehicles, Tata Motors said, “Supply disruptions from the outbreak have some impact on the BSVI transition and all efforts are underway to mitigate it.”
In February, auto sales was 250,698 units; a decline of 6.70 percent and 4.40 percent compared to February 2019 and January 2020, respectively.
Maruti Suzuki
The country’s largest passenger car manufacturer, Maruti Suzuki India (MSI) sold a total of 147,110 units in February 2020 down by 1.1 percent as against 148,682 units in the year-ago month. Total sales by MSI in February 2020 included 134,150 units in domestic market, 2,699 units of domestic OEM sales and 10,261 units of exports.
Total sales in the domestic market declined 3.56 percent in February. In a regulatory filing on March 1, the country’s largest carmaker said it sold 134,150 vehicles in the domestic market last month, as against 139,100 units in February 2019. The monthly sales data from the company comes at a time the country’s automobile sector is struggling against a prolonged slowdown due to weak demand.
This story is from the March 2020 edition of Steel Insights.
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This story is from the March 2020 edition of Steel Insights.
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