In an interview to CNBC-TV18, Rajan Wadhera, president of Society of Indian Automobile Manufacturers (SIAM), Ashish Kale, president of Federation of Auto Dealers Associations (FADA) and Deepak Jain president of Auto Component Manufacturers Association of India (ACMA) spoke at length about the latest the industry is doing to cope up with the coronavirus pandemic created showdown.
Wadhera said that SAIM expects an almost 25 percent decline in growth in the auto sector at 3 percent GDP growth. He further said that the situation in the auto sector is bleak and there is a lot of anxiety.
Speaking further about the current situation, Jain said, “If we are allowed to resume work the norms of health, social distancing and also the best practices we can continue, but it’s the extremely bleak situation, cash flows are critical at the moment. It’s a matter of survival first.”
Kale said that if lockdown continues, retaining manpower will become an issue. “We also request the government if it can rest the clock for the lockdown period; interest right now has just been pushed forward but I have not been waived off, we have not been subsidized for that. So with earnings at zero rate, with a very thin operational margin, 80-85 percent of our gross profit goes into cost. So sustenance of dealer is not as high and we have already had 15 months of slowdown period.”