Automakers warn of up to 45% sales drop as economy slumps amid pandemic

SIAM, an industry trade body, says that if the economy contracts by 2% in the year starting April 1, sales of cars, trucks and motorbikes could decline.

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