The Automobile sector is reeling under tremendous pressure amidst various reasons especially to pinpoint the spread of coronavirus longing around and the new headache of India-China tussle.
The Industry faces enormous delay in getting consignments cleared that are arriving from China and the resultant delay in manufacturing the finished products. The imports face clearance delays, border tensions and many more reasons attributed to the cause.
While the growth is limping back due to some relaxations of lock down, here and there, the delay in arrival of consignments for the finished products, adds only agony to the industry. The best need by the stalwarts of the industry is to somehow avoid all these hurdles.
Some components in the automobile sector are yet to be indigenised , they form as critical components and a challenge to bring out the finished products.
While the value of the automobile is huge, a meagre value contributes covering the components that are being imported affecting the export in a big way. As a result, the assembling gets affected and the manufacturing of vehicles comes to a halt.
Automobile exports radically reduced in the month of May 2020. Supply chains affected, foreign orders getting postponed for delivery and drop in export turnover as a consequence. The shipments to the US and Mexico, being vital markets for India, has affected very badly.
Let us expect the turn back of normalcy very soon.
Good article
ReplyDeleteThank you Takiman.
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