Indian Auto Industry losing Rs. 1,500 crores a Day
With the current corona pandemic, the number of infected cases have gone up by 100 in the last 24 hrs leading up to more than 500 cases with a death toll of 10 so far.
The entire country with major states has gone under lockdown till 31st March., the Indian
All the train services have been suspended along with access to only important sector officials.
Much like every industry, the Indian auto sector will be experiencing a huge loss this pandemic.
With the most cases being found in the most developed nations, the global economic sector will be suffering a huge loss. The economic sector is expected to suffer excessively with a loss of 70% jobs in the travel industry, which is expected to have the worst impact.
China is one of the biggest markets for most of the businesses. With China taking the biggest hit, the already suffering global economic sector is expected to degrade even further. The global pandemic of COVID-19 may also result in one of the worst recession worldwide.
The Indian auto sector contributes to about 7.5 per cent to the country’s GDP with a total of Rs. 2,000 crores every day. For the next 10 days, till 31st March, with a complete lockdown the auto sector in India will lose nearly Rs. 15,000 crores which roughly translates to Rs. 1.5 crores a day.
With the state and central lockdowns and with the borders being sealed, the auto manufacturing plants will be closing as well. Automakers like, Fiat, Mahindra, Mercedes, JCB, Maruti Suzuki, Tata Motors, Hero MotoCorp, Bajaj Auto, Honda Car India, Kia Motors, Yamaha, Ashok Leyland, Renault and Eicher Motors already announced plant closures while, Automakers such as Nissan, MG Motor and TVS Motor have not made any announcements yet.
With the sales dropped to almost next to none, The Federation of Automobile Dealers Association (FADA) has approached the Supreme Court to extend the deadline for sale of BS4 vehicles that was initially scheduled on 1st April 2020 to postpone to 31st May 2020. Dealerships all over the country have been unable to sell off these stocks with the current situation in the country as counter sales had dipped by as much as 60-70 per cent.
Even if the lockdown is till 31st March, it is expected to be extended with the current rise in COVID-19 cases. With the situation probably getting worse by April 1st, selling off all the older BS4 cars will still be a bit difficult by 31st May.
The current COVID-19 outbreak is expected to kill thousands of people worldwide with over 3.7 lakh infected cases and more than 16,300 deaths worldwide. The pandemic will be taking an economical, social as well as emotional toll on the population. Even the richest countries around the globe have failed to successfully contain the disease and have no answers for a viable treatment. For A pandemic that happens once every 100 years, the COVID-19 outbreak has successfully disregarded the new inventions in modern medicines from last century. The only way to prevent it is by keeping yourself and your family safe.
e at MYNEWCAR, urge the citizens of India to maintain peace and follow protocols. Even if the pandemic will be bringing a huge economical loss, we will still be able to overcome it with a healthy population. We hope and pray for the health of every human being on this planet and hope to overcome the situation soon.
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