Revenue Loss Due to Plant Closures to Cross Rs 2,300 Crore Per Day: SIAM

Auto trade physique SIAM on Tuesday stated the closure of producing crops by varied automakers and part producers as a result of coronavirus pandemic would result in a income lack 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 stated in an announcement.

All main automakers like Maruti Suzuki India, Hyundai, Honda, Mahindra, Toyota Kirloskar Motor, Tata Motors, Kia Motors and MG Motor India have introduced a short lived shutdown of crops. Two-wheeler makers like Hero MotoCorp, Honda Motorcycle and Scooter India, TVS Motor Company, Bajaj Auto, Yamaha and Suzuki Motorcycle have additionally suspended manufacturing. Besides, tyre makers and different main auto part makers to have shut down manufacturing actions because of the coronavirus outbreak.

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The outbreak of Coronavirus is, nonetheless, not the entire downside, however simply part of it. Before the outbreak pressured producers to close down their crops and halt manufacturing, the trade was already part of two main issues: the dreadful proximity of the brand new BS-VI emission norms and the extended trade slowdown that has plagued for over a 12 months. SIAM and different establishments have already appealed to the Supreme Court to increase the dates for the BS-VI emission norms, for which there have been no developments but.

(With inputs from PTI)