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Auto component suppliers

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Automakers are likely to be hit by issues at component suppliers, threatening their schedules as they take initial steps to restart production.

 

While some automakers have already placed product planning orders with suppliers, availability of parts could become a challenge. The component segment comprises hundreds of companies, including many small and medium enterprises. Many of them are constrained by lack of manpower, because of continuing travel restrictions and missing migrant workers who have left for their hometowns in the wake of the lockdown.

 

Parts makers spoke to said willingness of workers to join back and their transportation were some of the challenges they are facing. At the same time, the auto industry has been heavily dependent on China for parts.