The coronavirus which is spreading all over the world has ruined the financial calculations of many people. A nationwide lockdown was also imposed in India to control the growing spread of the virus. The forced lockdown, which has been in place for months, has also had a direct impact on the auto industry. According to a parliamentary committee, the lockdown in the Covid-19 Pandemic caused billions of rupees in damage to the auto sector every day.
Every day due to this lockdown, the auto sector had a loss of Rs 2300 crore. In addition, about 3.45 lakh jobs are expected to be lost. On Tuesday, the committee met Rajya Sabha Speaker M. Venkaiah Naidu to hand over the report. Some measures were also suggested to increase investment in the automotive sector.
Bad effects on small entrepreneurs
According to reports and sources, the new selection process in the auto sector is almost at a pause. In addition, about 286 vehicle dealer shops have been closed. The decline in production has also had a detrimental effect on small machinery manufacturers.
Loss of Rs 2,300 crore per day
According to the report of the committee, the lockdown imposed to prevent the transmission of the coronavirus also halted the production of vehicles. This caused a huge loss of Rs 2300 crore per day in this sector. The economic calculations of this sector depend on the current situation.
The biggest loss in two years
Given the current crisis, it is likely that this will be the biggest loss in the auto sector in the last two years. This will result in less use of skills and qualifications, lower-income, companies may face bankruptcy, and jobs in the auto sector will be directly affected.