Coronavirus has impacted Indian forging and auto component industry

The supply disruption caused by the novel coronavirus outbreak has severely hampered the forging and auto component manufacturing industry in India, according to the Association of Indian Forging Industry (AIFI).

A statement from the industry body said that the disruption caused by the coronavirus has hit the automotive industry and eventually also affected the automotive component and forging industries.

S. Muralishankar, President, AIFI said: "The coronavirus is expected to have an impact on the Indian automotive industry and hence also on the automobile component and forging industries, who had already reduced their production rate due to the market conditions and on account of the impending change over to BS-VI emission norms from BS-IV from the 1st of April 2020."

He said that the problem is further aggravated by the Chinese government's suspension of shipments by sea until further notice and allowing air-only shipments that are not suitable for auto components and forging industries. Therefore the Indian original equipment manufacturers (OEM) are unable to plan production beyond the inventory currently available to them.

According to AIFI, international customers have asked for shipments to be delayed till further advice, as their supply lines too are facing the adverse impacts of the disruption caused due to the shutting down of manufacturing facilities temporarily in China.

The Indian government has also issued a notification mandating the decontamination of containers at the port prior to release to the Indian customs. However, the guidelines and procedures to be followed for decontamination have not been notified, therefore, it is not possible for the Indian importers to clear consignments that have already reached Indian shores on time, the industry body said.

China is a major supplier of automotive components and accounts for 27 per cent of India's automotive component imports.

Citing reports the AIFI statement said that the impact on commercial vehicle, passenger vehicle and the two-wheeler segments will be more profound. Currently, the OEMs have reduced their production plan for February and March due to the non-receipt of components, it added.