Manu Balachandran is a writer for Forbes India, based in Bengaluru. At Forbes India, Manu writes on automobiles, aviation, pharmaceuticals, banking, infrastructure, economy and long profiles among many others. He also moderates many of Forbes India's CEO and CXO events and hosts Capital Ideas, a podcast on the most riveting success stories from the business world. He has previously worked with Quartz, The Economic Times and Business Standard in Mumbai and New Delhi. Manu has a master's degree in journalism from Cardiff University and a degree in economics from the Loyola College. When not chasing stories, he is most likely obsessing over Formula 1 (Read: Lewis Hamilton), historical events and people, or planning long weekend drives from Bengaluru
Parts of vehicles are in short supply Image: Feature China / Getty Images
India’s leading automakers —Mahindra, Tata Motors and Hero MotoCorp—admit that the coronavirus outbreak has hit production and supply of spare parts. The sector saw sales decline by 15 percent in the April-January period.
“Our BS-VI ramp-up has been affected because of the unforeseeable challenges on parts-supply from China,” says Veejay Ram Nakra, chief of sales and marketing, automotive division, Mahindra & Mahindra. “This has resulted in a high de-growth in billing volume for February and our dealer inventory is now under 10 days. We expect the challenge on parts-supply to continue for a few weeks.”
“There are thousands of parts that make a vehicle, and even if one or two don’t come on time, production gets held up,” says Vinay Piparsania, consulting director–automotive, Counterpoint Technology Market Research.
With the Indian government making it compulsory for automakers to sell BS-VI models from April, many would have already built up a buffer, especially of spare parts. “It’s a complex situation, but automakers are certainly going to look at alternative strategies in terms of sourcing,” says Piparsania. “Hopefully, the situation will improve in the next few months as China has restarted operations.”