Auto firms able to counter supply chain disruptions |
As India`s economy continues its fight with the effects of COVID -19, many industrial sectors are struggling to make ends meet. Adding to the woes was the Indo-China border tiff which made the import of many raw materials difficult. But even as the odds were against them, India`s leading automakers and their parts suppliers have managed to nearly overcome the supply chain disruptions. Parts` supplies have recovered to almost 85-90% of pre-COVID levels while imports of components from China and other countries have also returned to near-normal levels, barring a few items. India imposed stiff curbs on Chinese imports after a border clash in June between Indian and Chinese troops. This severely hit automakers as spare parts imports were already under pressure since January. Automakers` move to shift sourcing of certain parts from China and increased local manufacturing have helped partly alleviate bottlenecks in supply-chain networks. Automakers also raised output to record levels in October, indicating a smoother functioning of the vendor network and a revival of the industry`s just-in-time production model. The functioning of the auto industry`s supply chain network saw a marked improvement in the last few months as both domestic production and import of parts, including those from China, are getting streamlined. Though the production of vehicles, barring commercial vehicles, and components have reached pre-COVID levels, the industry continues to urge the government to ensure there are no further disruptions.
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