Categories: Business

Then nationwide lockdown will bring auto industry in crisis, Care ratings said employees will be affected

Photo: GOOGLE

Another pan-India lockdown will hit auto sector; affect workforce, capex plans: CARE Ratings

new Delhi. With the rapid increase in the number of people infected with the corona virus epidemic, the discussion of once-off lockdown across the country has intensified. In such a situation, Care Ratings has said in a report that once again the nationwide lockdown will get stuck in a deep recession, which will have a very bad effect on the employees working here. In addition, OEMs will also be forced to postpone new product launches and cut capital spending. This report by CARE Ratings indicates that the central government is once again considering a nationwide lockdown.

Most state governments have announced lockdowns at different locations to prevent the spread of the corona virus. The automobile sector is already in the grip of recession. Care Ratings said in its report that in addition to embroidered with government regulations to adopt new emission standards, Original Equipment Manufacturers (OEMs) have increased the prices of their products, which prevented consumers from purchasing. is.

Business and commercial activity came to a sudden halt due to the lockdown imposed in April and May in the country. The epidemic also disrupted the supply chain and halted all manufacturing operations in the country for 30 days. Many of the OEMs, ancillaries and dealers located in the Containment Zone had zero trading activity in April and May due to the lockdown.

However, there was some improvement in manufacturing activity in June due to gradual easing of restrictions. In addition, the month of June also saw an increase in automobile production, sales and exports. The future outlook for the automobile sector still remains uncertain.

The report said that once the nationwide lockdown is imposed again, it will get caught in the sector and deep recession, which will have a very bad effect on the very large workforce. OEMs will delay further launching of their new products and will be forced to rein in their expansion plans.

This post was published on July 16, 2020 11:24 am

Content Team

Recent Posts

Industry welcomes Delhi government's Electric Vehicle Policy

Photo: PTI Industry welcomes Delhi government’s Electric Vehicle Policy new Delhi. The scheme launched by the Delhi government to promote…

Microsoft in talk to invest $ 100 million in sharechat

Photo: MICROSOFT Microsoft in talk to invest $ 100 million in sharechat new Delhi. Microsoft can invest about $ 100…

uco bank cuts MCLR, IOB cuts base rate

Photo: PTI Uco Bank new Delhi. Today, two public sector banks have lowered their lending rates. UCO Bank has cut…