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Huge Losses To Automobile Industry Due To Lockdown
By: Tupaki Desk | 26 April 2020 11:11 AM GMT
One sector that should have been doing booming business but is completely down in the dumps is the automobile sector. The automobile sales, especially those of the two-wheelers peak during and immediately after Ugadi. This being the wedding season, the sale of four-wheelers too picks up considerably.
But, lockdown has changed it all. The sales have plummeted like never before. Every month, over 80000 vehicles are sold in Telangana. At least 25000 vehicles are sold in Hyderabad alone. Not just that 50 per cent of them are two-wheelers. But, for over the last one month, everything has come to a standstill due to the lockdown. The automobile shops have remained closed and there are no sales whatsoever. Though the Central government has given some relaxation to 20 sectors, the automobile sector is not one among them. As a result, the dealers and the showrooms are suffering heavily. They are unable to pay the salaries of the employees.
Automobile dealers say that every showroom incurs an expenditure of up to Rs 20 lakh a month. For the last one month, the overheads piled up with practically no income. As a result, the industry is staring at an uncertain future. The spare parts, servicing, garages and a host of allied industries are also down in the dumps. The automobile sector may not recover till the end of 2020, said sources.
But, lockdown has changed it all. The sales have plummeted like never before. Every month, over 80000 vehicles are sold in Telangana. At least 25000 vehicles are sold in Hyderabad alone. Not just that 50 per cent of them are two-wheelers. But, for over the last one month, everything has come to a standstill due to the lockdown. The automobile shops have remained closed and there are no sales whatsoever. Though the Central government has given some relaxation to 20 sectors, the automobile sector is not one among them. As a result, the dealers and the showrooms are suffering heavily. They are unable to pay the salaries of the employees.
Automobile dealers say that every showroom incurs an expenditure of up to Rs 20 lakh a month. For the last one month, the overheads piled up with practically no income. As a result, the industry is staring at an uncertain future. The spare parts, servicing, garages and a host of allied industries are also down in the dumps. The automobile sector may not recover till the end of 2020, said sources.
