Car Sales Decline up to 45 percent in Indian Auto Industry
Auto Industry in India will Decline in Sales Due to Coronavirus (Pandemic)
Our country moves into the 4th lockdown phase, economic stability has gone miserable in almost every sector.
By far there are prominent market crashes, job cuts, and deterioration in the GDP and we don’t know what more hoax this SARS pandemic is going to put us through.
Airports have been closed, transport has been almost reduced to the skeletal level. The research for the vaccine is still in full process and we don’t have one yet. The country is running on strict lockdown protocols and has adopted minimalism.
Effects on the Auto Industry
This has hindered vehicle movement to a sparse level and it would be maintained the same.
The tension going on in the current situation is forcing the automobile industry to face severe such as
Bearing financial losses.
Degradation of the product.
The automobile sector has a bullet on its head not only in India but in many other developing countries like Brazil, Bangladesh, etc.
Gradually as the lockdown eases, cars have been started moving on the assembly lines with workers practicing complete hygiene.
Problems faced by the Auto Makers
The plants are started as for now with the production rate becoming lower but this is just the tip of the iceberg as automakers have thousands of cars laying on their warehouses with BS4 engines.
Automakers investing their money in making BS6 compliant engines have made them drop the Diesel engines in few cars which is itself a bane as there would be a drop in the business from that line of customers who preferred Diesel.
The never known before pandemic has shattered the operations of the auto industry and automakers have no clue how these cars are going to sell as the government is focusing on the upliftment of BS6 engines.
Steps by the Government
There are relaxations provided by the government to the automakers to sell the remaining stock but selling these many cars after this nightmare is a challenge.
In the past year, the auto sales were already pointing in the descending order, and these conditions are only going to make it worse.
There were some concessions provided by the government to tackles the slow sales by
Depreciation of 30percent on new vehicles
Considering to add scrappage policy
Reduction on registration fees till June 2020.
The Auto Industry in Contemporary Times
In the current situation, the officials of various automakers are demanding a package for the Auto industry after Prime Minister announced a fund under the ‘Aatma Nirbhar Abhiyaan’.
The auto industry plays an important role in strengthening the economy of the country as imported cars and bikes have a heavy tax imposition.
In the past 1-2 months there had been almost no sale of a single vehicle in the country due to the complete lockdown, automakers have high hopes from the government seeking some relief.
There is a possibility of sales decline in the future and finding a way out is what everybody working in this sector is hoping for as there are millions of jobs at stake.
After the corona situation is toned down the auto industry has to cope up and look high at the sky as there are various new car launches scheduled and many more new automotive technologies to come.
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