Chinese imports held up at ports will disrupt supply chain: Indian auto industry
The ongoing tensions between India and China have had quite far-reaching consequences for various industries. Case in point: The Indian automotive sector, which has been severely affected due to imports from China being held up at ports. In fact, that was putting it mildly; the industry says this delay in clearance of Chinese imports is ravaging the industry’s supply chain. Never a good thing, for any industry for that matter. But back to the story — and as the situation continues to deteriorate, industry bodies Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association of India (ACMA) have appealed to the authorities to clear the imports held up at ports so as to ensure continuity of supply chain and the industry’s operations.
Rajan Wadhera, President, SIAM, said, “Inordinate delays in clearance due to congestions at port could eventually impact manufacturing of vehicles in India. The industry is piecing itself together as growth is limping back; any further disruption at this juncture is best avoided, stated Mr Rajan Wadhera, President, SIAM while commenting on the import consignments being subject to manual inspection resulting in inordinate delays in clearance at the Ports.”
No,w to help you get better perspective, allow us to give you an overview of how the automotive supply chain works and the effect it can have on the industry. You see the automotive supply chain all over the world continues to be an intricate endeavour that is highly dependent on factors within it. So, say, if a carmaker is unable to source just one part, the likelihood of the production line being halted is exponentially high.
ACMA President Deepak Jain noted that ever since the government started to relax the restrictions imposed during lockdown, both vehicle sales as well as component production has gathered momentum. And with crucial parts being held up at ports, the industry as well as the country’s economy stands to lose the pace it has managed to gather thus far.