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Corona Virus causing a threat of disruption for Hyundai

6th February 2020
"“Sadly, you cannot roll out the car without that small part which is still imported. We do not have issues for now, but if the lockdown in China continues, not just us, but the entire auto market will feel the heat ” States an official."

Since Coronavirus outbreak caused the lockdown of three Chinese factories of Hyundai. Hyundai Motor India Ltd. has alerted its dealer of the possible impact on vehicle deliveries.

The parent company, Hyundai Motor Corporation, Korea announced that it kept all the operations on hold at the three plants in China late on Tuesday.

The holding of the production is estimated to last for about a week, as reported by the international news wires. The Korean chaebol’s Indian arm Hyundai Motors India sources a very small portion of parts for its production facilities in Sriperumbudur near Chennai from Korea, which in turn is sourced from China.

The Sales team has already notified the dealers to place orders for vehicles as early as possible so that they do not suffer from the shortage. “HMI factory is monitoring and checking the possibility of parts suppliers from China. However not sure.” Stated TOI.

However, a Hyundai Spokesperson denied such communications that were sent and stated that there are no issues related to production. “I can assure you that there is no impact on our production schedule as of now.”

Hyundai’s operations in India are localized from the standpoint of components, but, some parts do come from Korea and other global sources.

“Sadly, you cannot roll out the car without that small part which is still imported. We do not have issues for now, but if the lockdown in China continues, not just us, but the entire auto market will feel the heat.” States an official with the citing of anonymity. “Don’t forget, China is the global manufacturing hub for parts and components and the shifting supplier is not an easy task.”

 

Compiled by : Debashish S Neupane Debashish S Neupane