India's automobile industry is likely to be negatively impacted and supply chain disrupted if the Coronavirus (COVID-19) outbreak in China and South-East Asia persisted longer, according to ratings agency ICRA.
These countries play a critical role in automotive supply chain and domestic OEMs source critical components and sub-components including fuel injection pumps, EGR modules, electronic components, turbo chargers from these markets which in turn directly or indirectly depend on China.
China accounts for 27% of India's auto component imports valued at $4.8 billion and, the impact is estimated to be higher for high value-add and customised components, while commoditised products could shift to alternative suppliers, ICRA said. India's automotive supply chain could get disrupted if the manufacturing activities in China continue to remain impacted.
