From no public gathering to following norms of social distancing after the widespread of the Coronavirus has hit us hard and affected every section of the society. From education sector to Airline services, railways all were shut down as nation was put under lockdown on from March 25 and since then the lockdown has been increased thrice and now is extended till May 17.
April has been the worst month for the automobile industry as it recorded zero sales of four and two wheeler vehicles for the first time in history. While some companies, managed to dispatch some units as export and executives say they are waiting for further directives on the reopening of plants.
“Maruti had zero sales in the domestic market in April 2020. This was because in compliance with the government orders, all production facilities were closed,” India’s largest carmaker said on Friday.
“The automotive value chain is highly complex, integrated and interdependent. A vehicle manufacturer cannot commence operations if any one of its suppliers is unable to undertake production,” says a letter addressed to Home Secretary by the three industry bodies – Society of Indian Automobile Manufacturers (SIAM), Automotive Component Manufacturers Association (ACMA) and Federation of Automobile Dealers Association (FADA).
“Further production for a vehicle manufacturer would only amount to adding to inventory and thus blocking working capital in case dealers are unable to sell vehicles. If any element in any segment does not commence operations, the value chain will not be able to re-start.”
The sector contributes 7 per cent of India’s total Gross Domestic Product (GDP). Experts have predicted that the prolonged closure of the sector will have an effect on millions of jobs due to the lockdown.
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