Business Standard

Supply chain uncertainty saddles auto component firms with inventory

Impact on passenger car makers due to chip crisis and raw material shortage, and on two-wheeler, tractor and CV makers due to demand swings has trickle-down effect on autoparts makers

Auto manufacturing
Premium

Shally Seth Mohile Mumbai
Amid supply chain disruption and skyrocketing commodity prices that have been worsened by the Russian invasion of Ukraine, automotive (auto) component makers are staring at a dilemma they haven’t faced in some years. Most have seen the inventory of raw materials and finished goods increase.

Here is why: passenger vehicle makers are no longer able to adhere to the production schedules, owing to the shortage of critical parts like semiconductors and raw materials.

On the other hand, two-wheeler, tractor, and commercial vehicle makers haven’t been able to give accurate projections on production volumes, owing to the frequent swings in demand.

Consequently, suppliers are

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 22 2022 | 9:00 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com