The automobile industry lost Rs 2300 crore per day thanks to Kovid-19 lockdown: parliamentary committee

 
New Delhi: in sight of the Kovid-19 pandemic and therefore the ensuing lockdown, the car industry suffered a loss of Rs 2,300 crore per day and an estimated 3.45 lakh jobs were lost within the sector. This has been revealed within the report of a committee of Parliament.
Rajya Sabha Chairman M Venkaiah Naidu presented the report of the Parliamentary committee on Department of Commerce on Tuesday. The committee is headed by Telangana Rashtra Samithi (TRS) MP Keshav Rao.

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The committee in its report has suggested several measures to draw in investment within the automobile sector within the country, during which it's been said to streamline the prevailing land and labor laws.
According to the report, 'the committee has been informed by auto industry organizations that each one original equipment manufacturers (OEMs) have reduced their production by 18-20 per cent thanks to lower demand and declining vehicle sales. As a result, the utilization scenario within the automobile sector was affected and an estimated 3.45 lakh jobs were lost during this sector.
It says that the human resources recruitment within the auto sector has stopped. additionally , 286 auto dealers closed their establishments.
The report says that production cuts have had a negative impact on the industry related to the parts during this region.
It said, "In the wake of the Kovid-19 pandemic and therefore the ensuing lockdown, the car industry has suffered a loss of about Rs 2,300 crore per day."
According to the press agency PTI, the Parliamentary committee further said that the particular effect depends on how long the lockdown period lasts and therefore the intensity and spread of the Kovid-19 outbreak.
The committee has said that in sight of the crisis, it's feared that there could also be an enormous decline within the auto industry for a minimum of two years. this may reduce capacity utilization, reduce cost , insolvency of companies and adversely impact jobs within the entire automobile sector.

 

(With input from news agency language) 

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