Hyundai has confirmed it will halt production at its car-making factories in South Korea due to a shortage of parts sourced from China, which has ordered curfews, factory shutdowns and travel restrictions in many provinces due to a deadly outbreak of a new strain of coronavirus.
A spokesperson for Hyundai confirmed to the news wire it will pause production, but noted timing for each plant will vary.
The company is reportedly running low on wiring harnesses. Two of Hyundai's suppliers, Kyungshin and Yura Corporation, told Reuters they were trying to increase production at their factories in South Korea and South-East Asia in order to compensate for lost Chinese production.
Hyundai has seven car-making plants in its homeland. The company's entire range Down Under, except for the i30 N hot hatches, are made in South Korea.
A spokesperson from the local arm told CarAdvice Hyundai Australia is monitoring the situation, but there is "no foreseeable impact at the this time".
Factories in many parts of China manufacturing consumer products, including smartphones and clothes, as well as parts for the global supply chain, have extended holidays from the Lunar New Year period and suspended production in line with Chinese government orders.
Market analysts IHS Markit believes a shutdown to around February 10 could reduce Chinese car output by roughly seven per cent or 350,000 vehicles. Protracted closures until mid-March could see production fall by 1.7 million units.
Last year the country made about 23.5 million vehicles for both local and export markets.
At the time of writing there have been 425 confirmed deaths due to the new strain of coronavirus. At least 20,000 people are thought to have fallen ill because of the virus, including 12 cases in Australia.