COVID-19 impact | Waiting period for cars may increase

India’s automobile industry is likely to face supply chain disruptions if the second wave of coronavirus outbreak is not kept in check.

While the surge in Covid-19 cases continues, the auto industry is getting jitters as restrictions have been imposed in  Maharashtra, where many manufacturing facilities are located.

However, automakers and component suppliers seem to be positive and have been taking all necessary precautions.

The sales numbers posted for February already had an impact of sluggish demand due to a fall in demand for two-wheelers, three-wheelers, and commercial vehicles in the country. Only private vehicles witnessed 10% growth in its sales.

Companies such as Tata Motors, Mahindra & Mahindra, Volkswagen, Mercedes-Benz, Endurance Technologies, and Flash Industries have manufacturing units in places that are facing fresh restrictions. The companies are currently analysing the situation.

According to a report in The Economic Times, companies are not witnessing any adverse impact on operations. But the protocols have been beefed up keeping the situation in mind.

However, production seems to be unaffected at this stage. But if the cases keep surging, the supply chain will see disruptions and increase the gap in already existing waiting periods.