Auto industry body SIAM on Tuesday said the closure of manufacturing plants by various automakers and component manufacturers due to coronavirus pandemic would lead to a revenue loss of over Rs 2,300 crore per day.
"As per quick estimates by SIAM, it is expected that plant closure of auto OEMs and components will lead to loss of more than Rs 2,300 crore in turnover for each day of closure," Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said in a statement.
All major automakers like Maruti Suzuki India, Hyundai, Honda, Mahindra, Toyota Kirloskar Motor, Tata Motors, Kia Motors and MG Motor India have announced a 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 to have shut down manufacturing activities due to the coronavirus outbreak.
The outbreak of Coronavirus is, however, not the whole problem, but just a part of it. Before the outbreak forced manufacturers to shut down their plants and halt production, the industry was already a part of two major problems: the dreadful proximity of the new BS-VI emission norms and the prolonged industry slowdown that has plagued for over a year. SIAM and other institutions have already appealed to the Supreme Court to extend the dates for the BS-VI emission norms, for which there have been no developments yet.
(With inputs from PTI)