New Delhi: Fitch Solutions on Wednesday forecast domestic vehicle manufacturing to shrink by 8.3 percent in 2020 due to a spread of the corona virus in China.
Vehicle parts companies have stopped production due to the spread of the virus infection in China. Fitch said that if virus infection spread in India too, such policies can be adopted here too. He said that given the state of India’s health and medical system, it can be said that the rate of spread of virus infection in India will be higher than that of China and there will be more widespread impact on the domestic automobile industry.
Fitch said that China is the largest supplier of components to the Indian automobile industry. In such a situation, the lack of ready-made parts in China may force the Indian auto industry to reduce or stop production.
“China supplies 10 to 30 percent of India’s auto component needs,” Fitch said. If we talk about the Indian electric vehicle industry, it becomes two or three times more. This shows how the Indian automobile industry is dependent on Chinese parts. “
