Lockdowns to prevent the Corona epidemic are estimated to cause heavy losses to the vehicle industry. Experts in the auto industry believe that the shutdown of factories across the country due to the lockdown could result in losses of over Rs 1 lakh crore. However, automakers expect factory production to pick up once the lockdown is lifted. Despite this, it will be difficult to make up for the loss in this entire year.
Coronavirus cases doesn’t see a fullstop in the near future. Cases are on a spree. More than 2,000 cases are being reported daily. The lockdown was enforced in the country since 25th March and have been extended to 17th March.
Auto sector provides highest employment
Significantly, the auto sector provides the highest employment in the country. It also gives the highest GST among all the sectors.
Big revenue loss to the government too
The lockdown has not only caused damage to the automobile industry, but the government will also have to bear big losses on the revenue front. The government is estimated to incur a GST loss of about Rs 28 thousand crore due to the stoppage of production of vehicles across the country. Apart from this, a loss of about 14 thousand crores has been estimated in various other items. The government earns a large amount of GST from the sale of new vehicles.
Companies ready to return with full power
Vehicle companies that have suffered heavy losses due to the lockdown are preparing to return from full power. Toyota Kirloskar reported that it is negotiating with dealers to increase vehicle sales after the lockdown. Some companies have also brought online booking options due to the closure of the dealership due to the lock down. Honda Cars India has tried to give a new option to customers through an online booking platform called ‘Honda from Home’.
Audi will provide free vehicle testing facility
Germany’s luxury vehicle company Audi has announced that it will provide free vehicle testing and disinfection of their vehicles to customers who have been working ahead in their efforts to deal with Corona. Audi India said that its customers, who are taking the lead in the fight with Covid-19, would be given the facility of disinfecting their vehicles, cleaning their vehicles and bringing and transporting their car, while expressing respect to them.
Export confidence only
The company said that only 632 cars could be exported this month. The company is now slowly starting work in its plant keeping in mind government regulations and guidelines. According to data released by Mahindra & Mahindra, this month saw a 98 percent drop in total sales. Mahindra & Mahindra, which could not sell a single vehicle in the domestic market, has also exported only 733 vehicles. Tata Motors according to their statement has not produced a single car since 36 days due to the lockdown. They have incurred a loss of 12 billion rupees due to this.
Javadekar’s meeting with prominent industrialists of auto sector
Union Minister of Heavy Industries and Public Enterprises Prakash Javadekar on Thursday met prominent industrialists of the auto sector. During this time he gave his suggestions on the issue of dealing with the situation arising out of the lockdown and speeding up the area after the lockdown ends.
