The Coronavirus Epidemic Is Having Serious Impact On Tech Firms In India
Dhir Acharya - Jan 31, 2020
The coronavirus epidemic may cost India millions of dollars worth of business as it affects the supply, availability, and launch of electronic products.
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The Chinese coronavirus epidemic may cost India millions of dollars worth of business. People are increasingly worried about the virus and precautions may disrupt component supply, the availability, as well as the launch of phones, TVs, along with other electronics products.
Top brands may be affected, including Apple, Xiaomi, Oppo, RealMe, Lenovo, TCL, OnePlus, and Vivo. The epidemic also raises worries for major manufacturers like Skyworth and Foxconn that make televisions in India with a large part of components from China. The worries are due to the limited levels of inventory in India while there's no certainty new supplies can start production in the coming weeks.
The Indian auto industry is self-reliant, but due to China’s big role in the market, is worried too, especially when electric mobility begins to rise. As Chinese firms such as FAW, Great Wall, BYD, and SAIC are accounting for a big portion in the upcoming auto exhibition at Greater Noida between February 5 and February 12, people fear that entry from China may raise concern for others who participate the event for potentially further spearing the coronavirus infection.
Siam, an organizer of the event besides ACMA and CII, is watching the situation closely. Siam president Rajan Wadhera said that the company has taken the advisories from the ministry of health and that it’s taking precautions at the exhibition’s venue.
Meanwhile, SAIC’s subsidiary MG Motors fears that it may not be able to exhibit enough cars at the event due to limited supplies from China. Rajeev Chaba, MG Motors India MD, said:
Regarding the phone industry, a Chinese phone maker’s top executive said in a statement:
Phone makers like Xiaomi, Oppo, and Vivo have assessed their existing stocks as well as the supply chain, with doubt if the next batch of supplies can arrive. He added:
According to another executive, the core of the coronavirus epidemic is now confined to the Wuhan area and not to China’s other major manufacturing hubs, problems will likely rise only. The executive stated that the country is mostly shut for the Chinese new year, but this will end by the weekend. With travel advisories as well as fear of the spread of coronavirus, factories in Shenzhen may not resume their peak production right away.