Coronavirus impact: Factory shutdowns to cost auto makers Rs 2,300 crore per day
Sumant Banerji March 24, 2020
The lockdown of automobile factories across the country due to coronavirus pandemic is estimated to cost the industry Rs 2,300 crore per day, industry body Society of Indian Automobile Manufacturers said on Tuesday.
Almost the entire industry has come to a standstill since Monday as the government has enforced a curfew in a few states and lockdown in various parts of the country to prevent the spread of the virus in the country. The number of positive coronavirus cases has crossed 400 in the country with 9 patients succumbing to date.
"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 crores in turnover for each day of closure," said Rajan Wadhera, President, SIAM.
Most of the factories shut operations from Monday morning and companies have said they will remain shut till at least the end of this month. Some companies like Mercedes Benz had closed their factory in Pune from last Saturday itself. The total loss in turnover for the industry due to the shut down is estimated at around Rs 20,000 crore.
The $120 billion domestic automobile industry accounts for 7.5 per cent of the country's GDP, about 49 per cent of the manufacturing GDP and 15 per cent of the GST collections. It employs more than 30 million people directly and indirectly.