India’s automakers have warned that total automobile sales could fall as much as 45% in the current fiscal year in a worst-case scenario as economic growth slumps due to the Covid-19 pandemic, and they are seeking government help through the crisis.
The Society of Indian Automobile Manufacturers (SIAM), an industry trade body, told government officials last week that if the economy contracts by 2% in the year starting April 1, sales of cars, trucks and motorbikes could decline by as much as 45% from a year before.
SIAM presented two more scenarios to the government: one where the economy grows by 2%-3%, which would lead to a 20% decline in auto sales, and a second where growth stagnates from last year, resulting in a 35% decline in sales.
The trade body represents most major automakers in India, including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hero MotoCorp and the local units of Toyota Motor, Hyundai Motor, Ford and Volkswagen.
Global consultancy McKinsey & Co estimated in April that if India’s lockdown was extended until mid-May, the economy could shrink by 2%-3% in the current fiscal year, while
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