Coronavirus impact! Benelli shuts operations at Hyderabad plant till 31st March

A recent estimate by SIAM says that the auto industry will have to face a loss of Rs 2,300 crore daily with plant closures.

By:March 26, 2020 7:01 PM

Amid the 21-day lockdown in India due to the Coronavirus that is spreading at a frightening speed, multiple automakers have announced their plant shutdown to prevent the situation from getting worse. The latest one to announce a plant shutdown is Benelli that started its second innings in India a few months back. The company said in a press statement that its manufacturing and assembly plant in Hyderabad will remain closed till 31st March 2020. Benelli adds that it has been monitoring the situation closely and ensured that necessary measures were taken on its premises, keeping in mind the safety of its employees. The employees at Benelli from other departments will continue to work from home.

Watch our Benelli Imperiale 400 video review here:

The situation arises in India just ahead of the BS4 deadline that is all set to implement starting April 2020. That said, currently BS4 vehicles worth Rs 6,400 crore are being unsold and are parked at the dealerships and stockyards. Over 12,000 dealers across India are shut amid the lockdown and hence, are not able to clear their remaining stocks. In this regard, the Federation of Automobile Dealers Association (FADA) had requested the Supreme Court for the extension of sale of BS4 vehicles till the 31st of May.

While the said body feels quite confident about this, it is yet to hear on the same. Now what remains to be seen is whether the Supreme Court extends the timeline and if not, dealers will have to face a huge loss with the pending inventory. A recent estimate by SIAM says that the auto industry will have to face a loss of Rs 2,300 crore daily with plant closures. Stay tuned with us for more such updates! For the latest auto news and reviews, subscribe to our official Express Drives YouTube channel.

Also, stay indoors and keep yourself and others safe amid this lockdown. Avoid riding/driving in this situation no matter how strong the urge is!

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