The Indian auto sector has been facing declines for quite some time. The year 2019 was like a nightmare for the auto sector. In such a situation, it was expected that the auto sector would see improvement in the new year, but now Coronavirus has fallen into havoc on this sector. In fact, given the threat of the coronavirus epidemic, all the companies have stopped the work being done in their factories until further orders. In such a situation, this sector is now facing heavy losses. This lockdown caused by Coronavirus infection is expected to cause a production loss of around 7.5 lakh units only in this month i.e. March 2020. At the same time, there is a fear of a loss of $ 2 billion in revenue from this closure.
If you talk about media reports during this period of detention, the atmosphere may be challenging, but companies will not lay off any employees. These include both permanent and temporary employees. Actually, these companies have been asked by the government not to lay off or cut salary.
The relief will be delayed
Officials of companies say that if the situation becomes normal then it will take a long time to recover the industry. In fact, experts believe that it will take time for customers to become normal, after which sales can be seen increasing. However, no one can tell how long this time will be.
How long will the lockdown stay?
Actually, if we look at China, Korea and other markets, if the conditions are normal, then it will take at least a month for the business to get back on track.
When the company’s earnings will be closed
Experts say that there will come a time when the business may remain closed for at least one month. This will be the period when companies will not get revenue. That is to say, in simple language, companies will not earn.
Production of these companies stopped
It also included Mahindra & Mahindra, Maruti Suzuki, Hyundai Motors and Toyota Kirloskar (Toyota) following the closure initiative by Tata Motors. Subsequently, Kia Motors, Renault Nissan Alliance, Yamaha Motor and TVS Motor stopped their production for a few days.