Indian auto industry is highly dependent on Chinese parts. About 27% of the roughly $17.5 billion worth of component imports into India comes from China, according to rating agency ICRA Ltd. “The auto industry is largely dependent on a single source for most components or, at best, multiple sources in the same region,” says Kavan Mukthyar, partner and leader- automotive at PwC India. Some global component giants such as Bosch have already sounded alarm bells, given their heavy reliance on China as an exports base. Vinnie Mehta, director general of Automotive Component Manufacturers Association of India, says, “Even if vehicle manufacturing is adversely impacted due to imports from China indirectly, it would resonate across the whole value chain.” This would exacerbate the slowdown in auto sales. Industry analysts say Chinese imports stretch across the value chain ranging from electronics and electrical parts to fuel injection parts and steering components. Component-wise, the maximum dependence, especially for the two-wheeler and passenger vehicle industry, is in steering systems, braking systems, engine parts and lighting systems.