NO DEAL

The Indian auto industry has largely been left out of the government’s COVID-19 relief package

- Tuhin Guha

It is widely regarded in economic circles that the auto industry’s health is a great indicator of how a country’s economy is doing. The sector usually invests heavily, employs lakhs of personnel, and is the focal point of an entire network of suppliers and dealers. This aside from how important the sector’s products are to mobilising the entire country, right from big corporations to individuals.

The nature of this business also means that it has been disproportionately affected by the COVID-19 pandemic. Being a discretionary purchase, many buyers have postponed their car-buying plans until the uncertainty of the current situation tides over. The complete lockdown in the month of April made this situation much worse when not a single car was sold in the country. Data from SIAM says automakers lost a combined Rs 2,300 crore for every day that production was shut. Closer to the ground, FADA says that 275 dealerships have had to shut shop.