New Delhi: The deadly coronavirus has cast a shadow on India's flagship motor show Auto Expo, while other sectors including travel and electronics manufacturing are keeping a close watch to avoid any possible impact of it on their businesses.
Automobile industry body Society of Indian Automobile Manufacturers (SIAM) on Tuesday said all Chinese companies participating at the expo have confirmed that their exhibit area would be manned by their Indian employees.
In addition, auto component makers body ACMA said Chinese participants at the components show of Auto Expo are unable to travel to India due to the outbreak of coronavirus in China, even as around 30 companies from there have confirmed that their stand would be managed by their Indian counterparts in their absence.
Meanwhile, restrictions on travel between China and India has impacted bookings and the travel industry is cautiously watching the situation, players said on Tuesday.
India on Sunday announced temporary suspension of e-visa facility for Chinese travellers and foreigners residing in the neighbouring country and issued a fresh advisory saying anyone with travel history to China since January 15 can be quarantined.
"With travel to mainland China and even Hong Kong severely restricted for days, the travel bookings had taken a massive hit," MakeMyTrip co-founder and CEO Rajesh Magow said.
With the mobile industry importing an estimated Rs 95,000 crore worth of components annually, a portion of which comes from China, handset manufacturers are waiting to see if the shuttered factories of suppliers reopen next week.
So far, however, there has been minimal disruption, as companies typically tend to stock mobile components and parts ahead of Chinese New Year holidays.
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"...there is a natural stocking up and preparation which the Indian industry and the global industry does ahead of the Chinese New year holidays. This will see us through till February 10-15. We will watch the situation daily. If the problem persists beyond February 10, then we will have a real problem at hand," India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo said.
Many consumer appliance and electronics makers, mainly sourcing components from China, have issued travel advisories to their sourcing teams, who typically travel to China for sourcing parts and sub-assemblies.
"We are having an industry meeting on February 6 and we may discuss this and take forward," said CEAMA President Kamal Nandi said. He added that the industry is waiting for China's factories to open on February 10.
The deadly virus, which originated in China's Wuhan city, is spreading to other nations. The outbreak has claimed more than 420 lives so far in mainland China, and has compounded fears of an economic impact.
India on Monday reported third novel coronavirus case after another Keralite student from Wuhan University in China tested positive for the infection. The Kerala government has declared the epidemic as a "state calamity".
Global business is also catching a chill from China’s virus outbreak.
Mink breeders in Denmark called off a fur auction because Chinese buyers can’t attend due to travel curbs imposed to contain the disease.
Airlines have cancelled 25,000 flights to and within China after ticket sales collapsed, according to travel data provider OAG. General Motors Co. and other automakers are telling employees to limit travel to China, their biggest market.
On Tuesday, the Chinese gambling enclave of Macau announced it was closing casinos for two weeks as a precaution. The territory is a big moneymaker for U.S. casino operators Wynn Resorts Ltd. and Las Vegas Sands Corp.
Global companies increasingly rely on China, the world’s No. 2 economy, as a major buyer of food, cars, movie tickets and other goods. But that has left them more exposed than ever to the pain of its latest abrupt slump.
The Singapore Air Show, due to open next week, announced Tuesday it is cancelling a business conference due to the absence of Chinese participants.
LG, ZTE withdraw from MWC, others may follow
Chinese tech major ZTE and South Korean giant LG Electronics have also decided to withdraw their participation from the upcoming Mobile World Congress (MWC) 2020 event in Barcelona later this month.
While LG has become the first major South Korean company to give MWC 2020 a miss, others may soon follow suit, considering the threat that the virus poses, according to industry watchers.
"LG Electronics is closely monitoring the situation related to the novel coronavirus outbreak, which was recently declared a global emergency by the World Health Organisation as the virus continues to spread outside China," the company said in a statement.
"With the safety of its employees, partners and customers foremost in mind, LG has decided to withdraw from exhibiting and participating in MWC 2020 later this month in Barcelona, Spain," it added.
According to a report in Yonhap, other South Korean companies, including automaker Kia Motors Corp. are looking at the possibility of withdrawing from MWC 2020.
Samsung Electronics Co., SK Telecom Co. and KT Corp. said they will run their MWC exhibition booths as planned but hinted that there could be a change of plans if the situation gets worse.
SK Telecom, South Korea's largest mobile carrier, already announced that it will cancel a scheduled press event at MWC 2020.
(Inputs from PTI, IANS and AP News)
