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India's automakers warn of up to 45% sales drop

2020-05-12    Author:   Source:Reuters   Views:1088    

NEW DELHI (Reuters) - 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.

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Cars are seen parked at Maruti Suzuki's plant at Manesar, in the northern state of Haryana, India, August 11, 2019. 

Picture taken August 11, 2019. REUTERS/Anushree Fadnavis/Files

The Society of Indian Automobile Manufacturers (SIAM), an industry trade body, told government officials last week that if India’s 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.

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