Due to the coronavirus outbreak, the manufacturing industry from the automobile as well as electronics suffers a massive dip in sales and imports. Many of the parts were imported from China and Korea but now these companies face tremendous problems in importing. Coronavirus in power is still dominating in some places in China and has consumed the lives of more than 3000 people.
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Increase in import prices
- The coronavirus in dominance has disrupted the supply chains.
- The import was first carried out through the sea route but now companies are forced to airlift their cargo at very high rates.
- The cargo shipping rates are $200,000 per 100 ton but it is now the cost is about 125% more.
- Due to this, many automotive companies are suffering and the financial model is at stake.
- Import components include turbochargers and many other electronic parts including sensors from China and South Korea.
Stopping the disruption
- Freit companies assume that it’ll take more than 90 days to get back on track. Although the companies are facing a lot of problems the amount of charted flights is said to increase as the stocks take the down route.
- The electronic manufacturers are increasing the price of the products by up to 3-5% but the automakers have not yet declared the hike in their prices.
- There is a huge dip in the sales of the parts as they get expensive. The manufacturing of the components has also seen some decline.
It can be assumed that in some time the sales and the manufacturing will be back in full swing but it is known when is that some time. For now, all the companies are at a back foot due to the coronavirus outbreak.