“Inordinate delays in clearance due to congestions at port could eventually impact manufacturing of vehicles in India. The industry is piecing itself together as growth is limping back; any further disruption at this juncture is best avoided,” said Rajan Wadhera, president of Society of Indian Automotive Manufacturers (SIAM), a lobby of automakers.
Explaining the complexity of the automotive value chain, Deepak Jain, president of Automotive Component Manufacturers Association of India (ACMA) said, “Some of the items imported from China are critical components, such as parts of engines and electronics items for which we are yet to develop domestic competence. The automotive value chain is a highly complex, integrated and interdependent one; non-availability of even a single component can, in fact, lead to stoppage of the vehicle manufacturing lines.”
ACMA is a lobby of automotive component makers.
Imported auto components amounted to $4.75 billion annually, Jain said, or about 4% of the $118-billion annual turnover of the automotive industry in the country.
“Post the lockdown, production in the component industry is gradually picking up in tandem with growth in vehicles sales. It is therefore in the best interest of the industry and the economy that any further disruptions are best avoided,” he said.
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Read More News on
Download The Economic Times News App to get Daily Market Updates & Live Business News.