Fresh investments in auto sector unlikely; long, dark period ahead: Siam

It will be a long, dark period for Indian auto manufacturers. Slowdown, complicated by the pandemic, will hit fresh investment and lead to job losses, industry lobby group Society of Indian Automobile Manufacturers (Siam) warned on Tuesday.

Auto and auto component makers together contribute more than 7 per cent to India’s gross domestic product.

“At the end of 2020-21, sales will be 50 per cent of what they were in 2018,” said Rajan Wadhera, president, Siam.

Wadhera said job losses in the auto sector cannot be ruled out. “When the industry continues to suffer slump, manufacturers will take cost rationalisation programmes — employee