Geopolitics impacting Indian auto industry
In conversation with Ashish Gupta, Brand Director, Škoda Auto India, The Pioneer learned that currently supplies of components and parts for the carmaker have not been affected by the ongoing conflict in Arabia and Iran. “But I’m worried if this situation continues there could well be concerns for all carmakers.”
Speaking to The Pioneer during the media drive of the refreshed Kushaq, Gupta made clear that he was working closely with his colleagues on the manufacturing side of things. “Products like the Kushaq and the Kylaq have a very high level of localisation, which insulates us. But every carmaker has global supply chains and eventually there could be delays in parts coming in, if not to us but to our vendors.” Gupta however highlighted that global supply chains also meant that parts could also come from other factories.
Other Indian carmakers have also highlighted that supply chains are under pressure due to the conflict. In fact, exports of cars from India to Arabia and North Africa have been impacted as well with a recent shipment of Hyundai vehicles to Jebel Ali returning to India.In case the situation continues to deteriorate many carmakers have said that production could be impacted and airfreight could be a solution.
