Coronavirus effect! Auto industry to face Rs 2,300 crore loss daily with plant closures: SIAM

While there are heavy discounts on BS4 vehicles at the dealerships at present, customers can't enjoy the benefits with the lockdown that is currently imposed across India for the next 21 days.

By:Updated: Mar 25, 2020 12:43 PM

Meanwhile, Federation of Automobile Dealers Associations (FADA) told FE that nearly 60% of dealer outlets are shut in India as of Monday.

Amid the Coronavirus outbreak in India, a lot of sectors have been badly hit with plant shutdowns and restriction of travel. Automobiles are certainly one of them and unfortunately for the sector, the rapid outbreak happened just ahead of the BS6 deadline that is set to implement starting next month, which is just six days from now. According to the Federation of Automobile Dealers Association (FADA), BS4 vehicles worth Rs 6,400 crore are still lying at the dealerships and stockyards unsold. Moreover, over 12,000 dealers across the length and breadth of the country are currently shut in the lockdown states, making the situation even tricky.

Numerous auto manufacturers have recently announced that they have suspended operations at their corporate offices and production facilities in the interest of public safety. That said, it is quite obvious that the current times are quite difficult for the Indian automotive industry and the same is facing a big loss of revenue each day amid the lockdown. Very recently, according to a SIAM estimate, it is expected that plant closure of auto OEMs and components will lead to a loss of over Rs 2,300 crores in turnover daily with closure. The said information has been shared by Rajan Wadhera, President, SIAM (Society of Indian Automobile Manufacturers).

While there are heavy discounts on BS4 vehicles at the dealerships, customers can’t enjoy the benefits with the lockdown that is currently imposed across India for the next 21 days. Stay tuned with Express Drives for more such updates. For the latest auto news and reviews, subscribe to our Express Drives YouTube channel.

Also, Express Drives urges its readers to cooperate in the state of lockdown and stay in homes. While we understand the fact that you must be having an urge to ride/drive these days and you must be holding yourself back, it should be completely worth it and the coming days will hopefully have positive news in store for us Indians!

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