The outbreak of Coronavirus that killed 1800 people and registered over 70 thousand cases is making negative impact in the logistics sector. India, being one of the key players in the logistics industry, is facing challenges.
Investment information and credit rating agency in a statement reportedly said that India’s automotive industry is likely to be negatively impacted by the outbreak of coronavirus across China and South-East Asia. The coronavirus outbreak created husky concern in the logistics industry followed by the automotive industry.
It can be mentioned here that India’s auto component imports have a 27% contribution from China and the value is at $4.8 billion.
“The impact is estimated to be higher for high value-add and customised components, while commoditised products could shift to alternative suppliers. But high investments and gestation period involved in developing tooling remain the key prohibitive factor for an immediate shift to new suppliers,” BusinessLine quoted Shamsher Dewan, Vice-President – Corporate Sector Ratings, as saying. From the ICRA’s part, the outlook for the auto components segment is negative.