Lockdown causes auto toe industry to lose Rs 2,300 crore every day, losing millions of jobs

The Parliamentary Standing Committee on Commerce has said that millions of people in the auto sector have lost their jobs due to the lockdown.

The Parliamentary Standing Committee, headed by Telangana Rashtra Samiti (TRS) MP Keshav Rao, has also outlined some steps to increase investment in the toe sector. This includes changes to existing land and labor laws. The committee said the decline in vehicle production has also affected manufacturing companies.

  • News18
  • Last updated:
    December 15, 2020, 10:54 PM IST

New Delhi. Every part of the Indian economy was badly affected during the coronavirus crisis. Now the Parliamentary Standing Committee has said that the auto toe industry is losing Rs 2,300 crore every day due to the Kovid-19 epidemic and the lockdown imposed for its prevention. Not only that, about 3.45 lakh people are likely to lose their jobs in the auto toe sector. The committee submitted its report to Rajya Sabha Speaker M Venkaiah Naidu on Tuesday.

The parliamentary committee also mentioned some steps to increase investment

The Parliamentary Standing Committee, headed by Telangana Rashtra Samiti (TRS) MP Keshav Rao, has also outlined some steps to increase investment in the toe sector. This includes changes to existing land and labor laws. The committee said in a report, “According to auto sector associations, all major core components, device makers (OEMs) have reduced their production by 18 to 20 per cent due to the decline in vehicle sales. Millions of jobs were lost.

Also read- Mahindra & Mahindra owes crores to this company, SYMC has been at a loss for many yearsPart manufacturers were also affected by the decline in vehicle production

Recruitment in the auto toe sector is almost stagnant, according to the report. In addition, shops of 286 vehicle dealers have been closed. The decline in vehicle production has also had a negative impact on the parts manufacturing industry. The biggest impact has been on micro, small and medium enterprises (MSMEs), which were engaged in the manufacture of vehicle equipment. The committee said production of the vehicle’s OMS has been halted due to the Kovid-19 epidemic and the LKL downtown for its prevention. As a result, the vehicle sector loses about Rs 2,300 crore every day.

Also read- Modern’s big claim! The company’s Corona vaccine is also effective on asymptomatic patients, find out how much it will cost

‘Auto industry to decline for two years’

The parliamentary committee also said that “the real impact will depend on when the lockdown is completely liberated and how the future of the Covid-19 crisis will come.” According to the report, given the crisis, there are fears that the auto industry could decline sharply for at least two years. This will reduce capacity utilization, reduce capital costs, increase the likelihood of bankruptcy of companies and adversely affect jobs in the entire automobile sector.

Source