The Coronavirus outbreak has been claiming lives inexplicably, resulting into lockdowns and curfews which have been paralyzing for the industries and in-turn the entire economy. Like global carmakers, almost all major automakers and component manufacturers in India have downed their shutter, with dealerships remaining closed, assembly plants being shut down and workers being sent home. The repercussions on businesses will be alarming and the Society of Indian Automobile Manufacturers (SIAM) has already estimated a minimum loss of ₹ 2300 crore each day.
Rajan Wadhera, President- SIAM said in a statement, "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." All major carmakers including Maruti Suzuki, Hyundai, Tata Motors, Mahindra, Honda Car India, Kia Motors, Toyota, Ford and Jeep India among others have suspended operations till further notice. Even two-wheeler makers like Honda Motorcycle and Scooter India, Suzuki Two-Wheelers, Bajaj Auto and Jawa Motorcycles have stopped operations as well.
The coronavirus pandemic has hit the world and in-turn the nation at a time when the auto industry was already struggling with its way out of a prolonged slowdown that took over a lakh jobs and that's the biggest scare going forward. Moreover, the entire auto industry will be transitioning to BS6 in about a week's time and with dealerships closed across the nation, sales have definitely gone for a toss, making the condition even bleaker for the Industry where stakeholders were looking forward to recover the invested amount. The industry has invested an estimated amount of ₹ 90,000 crore for BS6 transition.