AFP.

MUMBAI: Automakers may find component supply could be a problem, with some having placed product planning orders with suppliers. The components industry comprises hundreds of companies, including many small and medium-sized enterprises (SMEs). Many automotive companies have suffered from labor shortages due to ongoing travel restrictions and the disappearance of migrant workers following closures.

The program began this month after the blockade was eased to start production for 2,000 to 30 automotive companies, suppliers will provide some details on what they want to do as several major cities remain covid-19 hotspots and are not expected to ease. Clarity from the state. At least a few weeks.

Parts maker ET said workers’ willingness to return to work and transportation are some of the challenges they face.

Shri Ram Pistons Managing Director Ashok Taneja said, “Laborers who have returned to their villages are reluctant to return to work immediately due to resistance from their families.”

He said some states have started allowing industrial operations but the use of buses and private vehicles is restricted.

The company expects to reach at least 50 percent of its capacity in May. Deepak Jain, Executive Director, Lumax Industries, Automotive Component Manufacturers Association (ACMA) “You can’t stop supply chain startups. It is very difficult and requires a lot of working capital. The automobile industry has zero revenue this fiscal.”

Moreover, he said, restarting production and building inventory means nothing if dealers are not allowed to operate and consumers are not allowed to return to the industry. Jain added that GST needs to be liberalized to create demand.

Nirmalll Minda, Chairman, Minda Group He said, “When we are ready to start production, how much we are ready to produce depends largely on customer requirements. We will follow on-time production schedule to avoid inventory backlog. ”

Another issue that makes the situation worse is that the automobile industry is heavily dependent on Chinese components.