As Corona Virus has the world in a stranglehold it has been hampering both human lives and economy adversely. Due to its really easy transmission method, most of the world is currently under lockdown to prevent the further expansion of the disease. This means shutting down everything which is non-essential, including the automobile industry.
According to SIAM (Society of Indian Automobile Manufacturers), Indian automobile sector is losing ₹2300 Crore Per Day due to shutting down of plants and factories as it is unsafe for workers in said plants and factories. Being a non-essential commodity there is no reason to let the automobile industry running and further increase the risk of spread of infection.
Rajan Wadhera President of SIAM said that “As per quick estimates by SIAM, it is expected that Plant closure of Auto OEMs & Components will lead to loss of more than ₹ 2,300 crores in turnover for each day of closure.” This is a huge amount as the automobile industry was already in a bit of a slump from last year and this lockdown will hit harder than it would have if the last year was stable for the sector.
The transition to BS6 was expected to bring some sort of relief to the automobile industry as people would have bought the new emission norms version of the cars but now there is no clue as to what will happen.
The automobile industry has currently invested an estimated of ₹ 90,000crores to shift to BS6. The companies that have shut down their plants as of now include Maruti Suzuki, Hyundai, Tata Motors, Mahindra, Kia Motors, Ford and Jeep India and Toyota.
As the PM of India has already declared a total lockdown of 21 days there will a complete shutdown of dealerships and there will not even a single sale of a car for the duration of the lockdown. It is uncertain as to how long it will take for the economy to recover from this blow and get back to its state before the virus spread.