Indian Auto industry's output hit by 5-7%
According to the industry sources, the production capacities of many major auto makers in the Indian automobile industry is getting affected by approximately 5-7 percent due to severe shortage in supply of components.
Pawan Goenka, Mahindra and Mahindra's Auto and Farm Equipment's President, commented that tyres, casting and Fuel are the three manufacturing inputs that are majorly hit and at present nothing can be done about that fact.
When inquired, whether the components could be imported, he exclaimed that, this is not a commodity which in case of shortage can be imported from other countries. Each of these three components needs a certain time period to be produced.
Goenka also added that there has been considerable growth in the demand as far as the Indian automobile sector is concerned and this is another reason that has added to the crunch. Clearing the position, he said that, had the growth been around 10-12%, the condition of major manufacturing outlets would have been better.