Business

  • Alliance gets interim leader
    Mick McCollum on Wednesday was named interim president of the Fort Wayne-Allen County Economic Development Alliance.McCollum is founding chairman of the Alliance’s board and has been a director since 2000.
  • Max Fitness moves into city
    A $1.5 million fitness center will help Fort Wayne residents keep their New Year resolutions.Max Fitness is a 20,000-square-foot facility set to open at 1415 W. Dupont Road on Feb. 20, officials said Wednesday.
  • Nokia cuts 4,000 jobs in Finland
    Nokia will eliminate 4,000 jobs including at its oldest factory in Finland as it shifts mobile phone manufacturing to Asia, its largest market.
Advertisement

Shortage hinders car sales in India

Automakers can’t get parts fast enough, so buyers must wait

– Utkarsh Parasrampuria, a Mumbai jewelry designer, has waited about three months to receive his new Volkswagen Polo. He’s still not sure when it will arrive.

“This just goes on and on,” said Parasrampuria, 25, who put down a deposit for his $12,400 Polo in May. “I’m seriously considering getting a different car now.”

Suzuki and Hyundai, the two biggest carmakers in India, have also introduced waiting lists on some models as a dearth of batteries, engine castings and other parts forces automakers to curb production in Asia’s third-largest automotive market. Tata Motors is importing tires from China after local component suppliers failed to anticipate a surge of more than 30 percent in Indian car sales this year.

“At least for the next three to four months, the problems won’t get resolved,” said Pawan Goenka, head of the Society of Indian Automotive Manufacturers and president at Mahindra Mahindra, the nation’s largest sport-utility maker.

Mahindra made 12 percent fewer vehicles than it wanted to in the quarter ended June because of the parts shortage, Goenka said. Maruti Suzuki India, the country’s largest carmaker, has waiting lists of as much as a month for its Swift and Dzire models. Hero Honda Motors, the largest motorcycle maker, couldn’t make as many as 80,000 motorbikes in the second quarter, said Anil Dua, the company’s marketing head.

The shortage of parts and a consumption boom stoked by a doubling of per-capita income over the past eight years mean that Indian car buyers face industry wide waiting lists for the first time in more than a decade. Makers of steering wheels, bumpers and headlamps are rushing to boost production and build plants to meet the surge in demand.

“The parts-makers were caught by surprise,” said Deepesh Rathore, India managing director at IHS Automotive. “The loss of sales will lead to a loss of profit for automakers.”

Maruti has asked suppliers to boost investments after facing shortages of bumpers, tires and batteries, Chief Executive Officer Shinzo Nakanishi said. Tata began buying Chinese tires as Indian suppliers couldn’t meet its needs, said Debasis Ray, a spokesman for the Mumbai-based maker of trucks and $2,500 Nano cars.

“The supply of tires has been occasionally disrupted,” said Kurt Rippholz, a spokesman for Volkswagen in New Delhi. “That’s affecting all carmakers, not only VW.”

“In India, there is a unique problem of undercapacity,” said Ashvin Chotai, London-based managing director of Intelligence Automotive Asia. “The entire supply industry has been overcautious.”