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Supply shortage hits Indian auto ind's output by 5-7 pc

Indian auto industry's output is getting affected by five to seven per cent due to supply shortage in components, a top industry official said.

"Tyres, casting and fuel injection are the three problem areas...as I see it, nothing can be done about it and the shortage will remain the same as I do not see the supply going up," Mahindra and Mahindra's Auto and Farm Equipment's President Pawan Goenka told reporters on the sidelines of an event here.

Goenka further said that importing components is not possible. "This is not a commodity, which is in short supply and you go outside and pick up the required quantity. Each of the component (in short supply) needs a certain turnaround time to produce."

He also pointed out that the rapid growth, which the Indian automobile sector has seen in the last few months has further added to the woes. Had the sector grown at around 10-12 per cent, the manufacturers would have been in a better position, he said.

"Everybody is constrained," he said without giving any numbers pertaining to Mahindra.

Indian auto industry has been consistently witnessing a high growth for a few months now. It reached its peak last month when car sales were up 30 per cent compared to the same month last year, prompted by new product launches and increased consumer spending.

Source : The Economic Times