Auto shutdown loss pegged at `2,300 cr/day

The Rs 8.21-lakh crore Indian automotive industry, the world's fourth largest, would be hit with a revenue loss of more than Rs 23,000 crore during the first 10 days of shutdown due to the coronavirus pandemic in Asia's third largest economy.

The automobile industry is the third largest employer in the country.

The Society of Indian Automobile Manufacturers, or Siam, the trade lobby, on Wednesday said the closure of manufacturing plants by various automakers and component manufacturers due to the contagion would lead to a revenue loss of over Rs 2,300 crore per day.

All major automakers like Tata Motors, Maruti Suzuki India, Hyundai, Honda, Mahindra, Toyota Kirloskar Motor, Kia Motors, MG Motor India, among others, have declared temporary shutdown of plants.

Two-wheeler makers 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.

Manufacturing activities ceased from March 22 after the Maharashtra government decided to enforce work from home more strictly in the state. Companies having plants in Gujarat, Haryana, Karnataka and Tamil Nadu also followed suit to shut operations by March

23.

The Indian automotive market has produced an average of 75,000 vehicles every day so far this year, clocking production of nearly 25 million units till end of February, the latest data from Siam showed.

More than 500,000 units of two-wheelers, more than 5,000 passenger cars and little over 8,000 units of commercial vehicles powered by Bharat Stage IV engines are yet to be sold.

After the Supreme Court decided deadline of March

31 these vehicles will become scrap since BS4 stock cannot be sold or registered.