The COVID-19 Virus has come and hit the world by storm. As a result, people are continuously exploring the internet for Corona news India. What started as a mere viral flu in China, today is every country struggling to fight its massive spread. Why is this virus so dangerous? Why is everything taking a hit because of the spread of the virus? Well, to begin with, nobody knows the far-reaching consequences of this virus! This is because it is a mutant virus and it does come with a pretty high mortality rate. Although the number of aged people succumbing to this virus is more, young people are at risk too, as per the latest reports by the World Health Organization. As the virus transmits from human to human, less contact is the order of the day. As a result, many industries have closed their doors temporarily.
The result – many industries have taken a hit due to the various coronavirus cases in India. Of the many industries which are struggling in these difficult times, what is it like for the Automobile industry? Let’s find out.
Corona news India: What is the automobile industry dealing with?
Even before the coming of the Coronavirus, automobile industry was facing crippling moments with many factories shutting down. Now, with the coming of the Coronavirus, it is facing a bigger risk and loss. In fact, according to the IMF, this economic slowdown is probably going to be as severe or worse than the recession which had affected the world in 2009. It has estimated that the automobile industry will most likely suffer a loss of more than two billion revenue in the month of March only!
So, what is the basic problem that this particular industry is facing?
Well, automobile is a labour based industry, and hence, due to the unavailability or rather keeping in line with the rules in place laid out by the Government of 21 days lockdown, no labour force is available now. As a consequence, many manufacturing units have had to close their doors. This is a social responsibility, which has been taken by many industries and the automobile industry is no exception to this. Experts from the industry say that as the coronavirus cases keep on rising, the situation becomes more and more precarious because no one knows when this is going to come to end.
As per rules and regulations, no salaries can be deducted. Neither can temporary workers be fired in the wake of this pandemic.
Hence, the automobile companies will continue to pay the salaries and other additional costs to maintain their manufacturing units. But their output will be nil. And it is difficult to tell since whether the lockdown lifts after three weeks or not. It entirely depends on the number of cases of the virus attack, across the country and of course globally. Thus, the companies will be incurring a huge loss from this. Apart from this, the demand for automobiles is going to take a hit as well, because experts analyse that the corona news India will indeed bring about a definite mindset amongst the potential buyers, who will take much time even after the lifting of the world’s biggest lockdown to finally go out and purchase a car. Thus, the demand will be low for quite some time. In fact, some industry experts predict that this slack will continue to the fiscal year of 2021.
All in all, the automobile industry in India has taken a hit with the coming of the Coronavirus, and like all, this too will take time to recover.