Automobile sales in India in the current fiscal year 2020-21 will be about 50 percent of total sales achieved in 2018, according to the forecast made by the Society of Indian Automobile Manufacturers (SIAM) on Thursday, August 6.
Predicting that fresh investments in the auto industry will be hit while there will also be risks of significant job losses, SIAM stated, “When the industry continues to suffer a slump, manufacturers will take cost rationalization measures, employee cost being the most significant component of it.”
SIAM has projected that by the end of the current fiscal year domestic sales across categories including commercial vehicles could be 26-45 percent lower than in the previous fiscal year.
The domestic automobile industry together with component manufacturing industries account for seven percent of India’s total gross domestic product.