Impact on Automobile Industry in Lockdown Period.
                     Impact on Automobile industry 
during Lockdown period
IMPACT ON AUTO INDUSTRY
The automotive industry is expecting a loss of 7.5 lakh 
units in production and $2 billion in revenue in March 
alone because of the lockdowns to combat the Covid-
19 outbreak. Despite the tough business environment, 
several automakers have said they would not lay off  
any permanent or temporary workers
Source: Google Images
NO PRODUCTION
Production has come to almost a standstill, as state 
governments have imposed lockdowns and companies 
themselves shut their factories to help break the 
chain of the coronavirus outbreak. Since these 
measures will remain in place at least until the end of 
March, companies are sure to lose a third of the 
output for the month.
Source: Google Images
ANNOUNCEMENTS MADE
Tata Motors was the fi rst to announce that it was 
shutting several plants. It was followed by Mahindra, 
Maruti Suzuki, Hyundai Motor India and Toyota 
Kirloskar on Sunday. Kia Motors, Renault Nissan 
Alliance, Yamaha Motor and TVS Motor from the 
southern automotive belt said they too would suspend 
production. Suzuki Motor Gujarat also announced 
shutdown.
Source: Google Images
DEALERSHIPS SHUT
Dealerships are also shut in districts that are under 
lockdown. Those elsewhere are getting few visitors, said 
industry executives. But now that entire country has 
been shutdown, even dealerships had to close, as they 
are ‘non-essential’ services.
Source: Google Images
POOR OUTLOOK
Given the environment, at best, passenger vehicles 
and two-wheelers may register flattish growth. 
However, commercial vehicles is expected to continue 
to decline next financial year.
The estimated production shortfall in March includes 
more than 1 lakh cars, 12,000-15,000 trucks and over 
a half-million two-wheelers, said several people 
tracking the sector.
Source: Google Images
STRUGGLING SECTOR
While sales are usually high in March for the 
automotive industry, it was different this time even 
before the current situation arose. Production was 
estimated to be 1.8-1.9 million units across segments 
this month as against 2.1 million units produced a year 
earlier.
Source: Google Images
SHORTAGE OF COMPONENTS
Automakers were also facing shortage of components 
from China, where factories were shut for much of 
January and February due to the coronavirus 
outbreak. The outbreak fi rst occurred in China, which 
was under complete lockdown for nearly two months.
Source: Google Images
NO COMPLETE CLARITY
The impact of the COVID-19 pandemic on India's 
automobile industry will be clear once the ongoing 
lockdown is lifted and there is clarity on the time 
taken by supply chain to resume optimal production, 
according to a top Nissan Motor India offi cial.
Source: Google Images
SEEKING FINANCIAL HELP
Last month, the auto industry had also sought from 
Finance Minister Nirmala Sitharaman measures to 
support the sector after the government announced 
financial action plan of Rs 1.7 lakh crore to support 
medical warriors, daily wage earners, farmers, 
construction workers, self-help groups and women, 
among others.
Source: Google Images