Auto industry stares at Rs 48k cr loss amid shutdown

NEW DELHI: The closure of manufacturing plants by various automakers and component manufacturers due to coronavirus pandemic would lead to a revenue loss of over Rs 2,300 crore per day, said auto industry body SIAM on Tuesday.
Prime Minister Narendra Modi announcing a 21-day nation-wide lockdown, starting Tuesday, in order to curb the spread of the coronavirus adds to the worries of car and component makers. A three-week shut down of the automotive industry will translate into a revenue loss of Rs 48,300 crore.
“As per quick estimates by SIAM, it is expected that plant closure of Auto OEMs & Components will lead to loss of more than Rs 2,300 crores in turnover for each day of closure,” Rajan Wadhera, president, on the automotive body said.
All major automakers including Maruti Suzuki, Hyundai, Honda, Mahindra, Toyota Kirloskar Motor, Tata Motors, Kia Motors and MG Motor India have announced a temporary shutdown of plants.
Similarly, two-wheeler manufacturers like Hero MotoCorp, Honda Motorcycle and Scooter India, TVS Motor Company, Bajaj Auto, Yamaha and Suzuki Motorcycle have also suspended production.
Besides, tyre makers and other major auto component makers too have shut down manufacturing activities due to the coronavirus outbreak.
“If we don’t handle these 21 days well, then our country, your family will go backwards by 21 years,” PM Modi said while addressing the nation.
There will be a complete bar on people from stepping outsides their homes, the Prime Minister said and even folded his hands to emphasise his request to citizens to adhere to the call.
Experts and the experience of countries fighting the deadly virus make it clear that the social distancing is the only way to combat the disease, he asserted.
The death toll due to coronavirus has crossed 17,000 globally. Over 500 positive cases have been reported in India with the death toll nearing double digits so far.

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