Maruti, Hyundai, Toyota say production schedules have not been affected so far by the outbreak of coronavirus in China

NEW DELHI: leading car manufacturers Maruti Suzuki , Hyundai and Toyota Kirloskar Motor do not see any immediate impact on their production schedules due to the interruption in the supply of plant components located in China, affected by the coronavirus.

However, companies continue to closely monitor the situation, especially the operations of their main suppliers, to face any adverse situation that may arise in the future.

Brief notices

Explore the writings

We do not foresee any problem as of now. We will keep in touch with our suppliers and will inform if there is any issue, a Maruti Suzuki India spokesperson told PTI when contacted over the issue.

A spokesman for Hyundai Motor India said: We are monitoring the situation closely. However, at this time there is no impact on the operation of the company.

Similarly, Toyota Kirloskar Motor (TKM) said that so far there has been no immediate impact on the supply of parts and their production since the outbreak of coronavirus in China.

Our Tier I and II providers have not yet been affected. However, we are continuously monitoring the operations of Tier III and IV suppliers to understand any possible slowdown that may arise due to the slowdown in the logistics flow in China, especially Wuhan, said senior vice president of TKM (Sales and Service) Naveen Soni.

The company focuses on increasing the supply base through the location of parts and components, thus providing an opportunity for local suppliers, he added.

TKM remains committed to contributing effectively to the 'Make in India' government mission, and has developed a global supplier base and supply chain in India over a period of 20 years, Soni said.

These localization efforts have also ensured a smooth transition from our manufacturing plant to 100% of BS-VI manufacturing facilities since January 2020 without major obstacles in supply. At the same time, our dependence on parts from multiple sources has allowed us the flexibility of supply to other countries when China has an impact, he added.

Kia Motors India said its production has not been affected so far.

The coronavirus hasn't impacted us till now, but we are keeping an eye on the development for gauging the future impact, a company spokesperson said.

However, MG Motor India reported a disruption in the supply chain that affected its production and sales performance in February.

The unforeseen coronavirus outbreak has severely affected our European and Chinese supply chains, disrupting our production and impacting our sales in February and will continue through March, MG Motor India Sales manager Rakesh Sidana said.

The company is working to stabilize the situation and expects a reasonable normal to be restored by the end of March, he added.

Tata Motors declined to comment on the issue, but its CEO and Managing Director Guenter Butschek had earlier this month said that clarity about supply constraints of components from China will only emerge when workers in the coronavirus -hit country rejoin work.

The company imports certain components for Nexon EV and other traditional models from China.

The automotive industry agency, the Society of Indian Automobile Manufacturers (SIAM), had previously said that it will collect information and data from its members to understand if there could be interruptions, and to what extent, if applicable.

The two-wheel makers Hero MotoCorp and TVS Motor Company had said earlier this month that coronavirus (COVID-19) outbreak in China would hit their production by around 10 per cent in February.

Citing disruptions in automotive supply chains due to coronavirus outbreak, rating agency Moody's has already lowered its global auto sales forecast.

Similarly, the Association of Indian Forging Industry (AIFI) said that disruption in supplies due to the coronavirus outbreak in China has hit domestic forging industry along with automobile and auto component manufacturing sectors.

The domestic automobile industry, which has been riding through the worst slump in two decades, is likely to be negatively impacted and its supply chain disrupted if the coronavirus outbreak in China and South-East Asia persists longer, rating agency Icra had said last week.

Around 3,000 people have lost their lives in China due to the disease so far.

Cases of coronavirus have also emerged in various other countries, including South Korea, Japan, Iran, Italy and Singapore.

comments