Coronavirus impact: Auto OEMs feel safe for now, fear challenges thereafter

While China represents only a part of supplies and other sources exist, there could be delays in activation of alternative supply chains and increase in costs for Indian OEMs

Automakers in India seem to be divided over the impact of the coronavirus outbreak on their businesses. While some have said their production will take a hit, others believe they have a cushion for about a month, having stocked their inventories well in advance due to the Chinese New Year and in anticipation of new orders which are usually placed after the holiday period. This period lasts till the second week of February. The corona outbreak time is actually a lean period.

The China issue could support the margins of battery and tyre firms like Apollo Tyres, on account of the