Home News Extended lockdown in China may affect the domestic auto industry

Extended lockdown in China may affect the domestic auto industry

Extended lockdown in China may affect the domestic auto industry


The operations of
domestic automobile manufacturers may get further impacted if the lockdown in
several cities of China, including Shanghai, to check Covid-19 infections gets

The global
semiconductor shortage has already forced original equipment manufacturers
(OEMs) to take production cuts. The supply chain disruptions due to multiple
Covid-19 waves and the recent Russia-Ukraine war have not helped the matter

Honda Motorcycle
& Scooter India president, MD and CEO Atsushi Ogata recently told FE that
the company is witnessing some impact on the production of a few of its models,
which use smaller chips imported from China, as activities have been suspended
at the Shanghai port.

A Tata Motors
spokesperson said that the automobile industry, in particular, continues to struggle
with a global shortage of semiconductors, and while there is improvement in
recent months, it remains uncertain in the short term.

Saket Mehra, partner
and auto sector leader, Grant Thornton Bharat, said as Chinese imports cater to
the Indian automobile, steel and electronics sectors, any lockdown will result
in a direct impact on these sectors.

Suraj Ghosh,
S&P Global, told that if the lockdown
curbs persist and normal production does not start in the next few weeks,
India’s auto industry will be at risk of production hits, as several electronic
components and sub-components are sourced from China.

Source: Express Drives

Source: Google Images

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