HomeCar NewsMG Hector production may decline - Coronavirus affects supply chain

MG Hector production may decline – Coronavirus affects supply chain

MG Hector production increase
MG Hector rolling out of the plant in Gujarat.

MG India has revealed that they might face some production constraints in the month of Feb 2020. This is directly due to the Coronavirus outbreak in China.

In an official statement released today, MG Motor India said that they are expecting production constraints for the month of Feb 2020. This is because of a disruption in the supply chain from their vendors who are located in Europe, China and other Asian countries due to the coronavirus epidemic. The company does not have excess inventory to cover the impact.

The SAIC-owned automotive brand claims that the overwhelming demand for the MG Hector is one reason why it does not have saved inventory. There is a huge backlog of orders (about 20,000 buyers in the queue, as of today) even though MG Motor India’s Halol plant is working at full capacity. With Hector’s production declining in Feb 2020, waiting periods are bound to increase.

Auto Expo 2020 venue
File photo of Auto Expo venue in Greater Noida, where 2020 Auto Expo will start on 5th Feb. Image – Auto Expo.

The world is shaken by the outbreak of novel coronavirus in China and authorities inside and outside the People’s Republic are trying their best to find a cure and control its spread. Being a one-of-a-kind epidemic, there is only room for precaution at this moment and it was only recently that India’s first confirmed case of coronavirus was reported. The Indian government has taken all the necessary steps to keep things under check while educating the public of the rights and wrongs to do in this situation. However, a major public event stands as a matter of concern — Auto Expo 2020.

The 15th instalment of the country’s biggest biennial automotive show will be held from 5th to 12th February 2020 at the India Expo Mart in Greater Noida. Even though multiple brands are making a miss this year on account of different reasons, quite a few Chinese automakers will be introducing their latest and best at the show. In fact, MG Motor India plans to showcase over 14 new products while new names such as Great Wall Motors and FAW Haima announce their Indian debut.

Live Mint reports that many delegates in the automotive industry (especially individuals from China) have cancelled their early-February tickets to New Delhi. However, none of the Chinese brands participating in the event is giving their plans a second thought. The dedicated pavilions may be managed by their Indian representatives.

Deepak Jain, President of the Automotive Component Manufacturers Association of India (one of the main organisers of Auto Expo 2020), shared that Auto Expo officials will be taking all the essential precautionary measures and have been in touch with the brands. He added that no chances of an adverse impact were seen while assessing the situation.

The World Health Organisation (WHO) has declared coronavirus as a public health emergency. So far, confirmed cases were reported in 18 countries around the globe. The victims are directly or indirectly connected to the city of Wuhan (the epicentre of the virus) and other regions of mainland China; just like the delegates who were supposed to come to Auto Expo 2020.

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