Amid suffering from the coronavirus pandemic, The automotive industry has come to a grinding halt in India as states shut down all non-essential services to stem the growth of COVID-19 in the country. The major automakers like Maruti Suzuki India, Hyundai, Honda, Tata Motors, Kia Motors, MG Motor India, Mahindra, Toyota, and Kirloskar Motor & Two-wheeler makers like Hero MotoCorp, Honda Motorcycle, and Scooter India, TVS Motor, Bajaj Auto, Yamaha, and Suzuki Motorcycle have announced a temporary shutdown of plants.
Already, the automobile industry has been passing through a tough time for the past year owing to general economic slowdown and switchover to BS-VI emission standards, which has resulted in a huge drop in monthly sales. The industry will switch over to BS-VI emission standards from April 1, 2020.
Rajan Wadhera, President, SIAM said
“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 crore in turnover for each day of closure”
The lobby group, though, appreciated the announcements made by the union government, on Tuesday, for the ease of doing business during the Corona Virus pandemic.
“The series of announcements made by the Finance Minister today, with regard to the extension of return filing for GST and Income Tax till June 30, declaration of 24 X 7 customs clearance as essential service, and many more relaxations in Insolvency and Bankruptcy Code and penalty charges for companies, especially MSMEs, will lessen the challenges for companies in the immediate term,” added Wadhera.
As the number of persons infected with the novel Coronavirus rises significantly in India, leading automakers, across segments, have decided to shut down respective manufacturing capacities to protect their factory staff and comply with the state and central government’s efforts to ensure social distancing.