- SIAM says,PV sales to decline 20%-24%,if GDP growth falls below 1%.
- Automobile industry can reduce to the numbers of FY’11 .
- For GDP growth of 3%,decline in auto sector’s growth would be at almost 25%.
- For the FY’20,India’s Auto sector observed 21% decline & 22% decline in 2-wheeler sales.
SIAM (Society of Indian Automobile Manufacturers) is working in working in partnership with the government of India to minimise the impact COVID-19 on the Indian Economy as a part of our ongoing initiative of “Building the Nation Responsible”Rajan Wadhera (SIAM President)
Observing one of the worst decline of the decade SIAM has requested the Government of India for help.Earlier SIAM and ACMA India (The Automotive Component Manufacturers Association) on Mar 22 have requested their members to consider plant shut down for a limited period,so that workers aren’t exposed to the virus.
These all decisions combined with the cascading effect of already declining Auto sector may now result in 20%-24% decline in near future for the FY’21 and for same SIAM has requested the Govt. of India for help.
These all numbers are based on presumptions that GDP growth of the country slowing down to less than 1% in the respective fiscal.This decline could result industry going back to the numbers of FY’11 i.e 21.5 lakh units.In FY’20,there was a sales decline by more than 17%,which is around 27.7 lakh units.
Further,SIAM president talking to CNN-TV 18 also presented many other scenario with different GDP growth rates.First,in the case of 4% GDP growth,decline in Sales would be 10%-12% and in second scenario,SIAM told if GDP growth rate persists at 3% then the decline would be 13%-16%.
Initially,SIAM projected 2%-4% growth this year ,when there was not any hint of the pandemic.As the world is now going through the pandemic of worst kind,Covid-19,Indian industries are also facing its heat like other markets of the world.Thus,collectively it might not affect us that bad but it may affect in loss of jobs and employment to many Indians.
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