Japanese auto arms still gauging tsunami blow

Japanese automobile firms operating in India are likely to take a week to 10 days to realise the full impact of the earthquake and tsunami back home on their operations in this country.

With all automobile plants across Japan shut till Wednesday, their Indian ventures have gone into a huddle, trying to assess the damage as supplies of crucial parts and components from Japan have already dried up.

Maruti Suzuki India, which sells one of every two cars in India, buys steel and some engine components from the Japanese parent.

Though its steel requirements are also met through South Korea and Europe, lack of access to Japanese supplies is sure to affect the company’s operations in the short to medium term.

A Maruti Suzuki spokesperson merely said that the impact of the situation is being assessed and no more information was available at this time.

Since the company manufactures almost its entire product line in India and boasts of import content of only 10% across its product range, it may remain somewhat insulated from the Japan crisis.

On the vehicle import front, it has just begun selling the Kizashi — which is imported from Japan — besides the Grand Vitara, which is also imported but sells in small numbers.

But the situation may not be as comfortable for Honda Siel Cars India, Toyota Kirloskar Motors and Nissan India. All these companies have been sourcing many crucial vehicle parts from Thailand and Indonesia so that initially the impact of Japan crisis may be minimal.

A Nissan India spokesperson said the company was still assessing the situation.

Like Honda, Nissan is completely dependent for technology and products on the Japanese parent so that some impact is inevitable.

Toyota, though less dependent on the parent, said any impact on vehicle production in India and imports would be felt only in about a week to 10 days.

“We are safe for the next week to 10 days… We will know the situation in Japan better by Wednesday,” Sandeep Singh, deputy managing director, Toyota Kirloskar Motor, said. “Toyota is sourcing most of its components from Indonesia and Japan for the Innova, Fortuner and Corolla, so I don’t see much impact on these products. Our CBU cars are the Camry, Land Cruiser, Prado and Prius, but their numbers are quite low — around 1,000 units every year — and anyway, we import them in batches.”

A Honda official said that for his company also, many imported parts come from Thailand and other countries.

But the situation could be more difficult for Honda, since import content is over 70% for the Accord, 28% for Civic and about 25% for City and Jazz. The CRV is imported as complete built unit.
The official said supplies are available for around a month.