Lockdown impact; Automotive industry suffered Rs 2,300 cr loss per day, 3.45 lc job loss: Par panel
New Delhi, Dec 15: In the wake of the COVID-19 pandemic and subsequent lockdowns, the automotive industry suffered Rs 2,300 loss crore per day and an estimated job loss in the sector was about 3.45 lakh, according to a parliamentary panel report submitted to Rajya Sabha Chairman M Venkaiah Naidu on Tuesday.
The Parliamentary Standing Committee On Commerce, chaired by Telangana Rashtra Samithi (TRS) MP Keshav Rao, has also suggested a slew of measures for attracting investment in the automotive sector in the country, including overhauling of prevalent land and labour laws.
"The committee was informed by the auto industry associations that all the major original equipment manufacturers (OEM) have cut down their production by 18-20 per cent due to low demand and decline in sales of vehicles. As a result, the employment scenario in the automobile sector has been affected and the an estimated job loss in the auto sector at 3.45 lakh," the panel said in its report.
Hiring of manpower has been stopped in the auto industry sector. Besides that, 286 auto dealers have been closed. Further, production cuts in the automobile sector have a percolating negative impact on the component industry adversely affecting the Micro, Small and Medium Enterprises (MSME) engaged in the automobile spare parts manufacturing, the report states.
"As informed by the Automobile Industry Associations, the production stoppage at the automotive OEM and component supplier due to the COVID-19 pandemic and subsequent lockdowns led to a loss of approximately Rs 2,300 crore per day to the automotive sector," according to the report.
The standing committee further said the actual magnitude of the impact depends on the duration of lockdown period, the intensity and extent of spread of the COVID-19 outbreak.
Considering the crisis, it is predicted that the automobile industry is likely to go through at least two consecutive years of severe contraction, leading to low levels of capacity utilisation, lack of future CAPEX investment, high risk of bankruptcy and job losses across the entire automotive value chain, the committee said.
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Stoinis hundred trumps Gaikwad's ton, helps LSG beat hand CSK by six wickets
Chennai, Apr 23: Marcus Stoinis smashed an outstanding century to trump Ruturaj Gaikwad's effort as Lucknow Super Giants beat Chennai Super Kings by six wickets in an IPL match on Tuesday.
Stoinis remained unbeaten 124 off 63 balls with 13 fours and six sixes as LSG completed a record run chase at the Chepauk in 19.3 overs. This was also highest individual score in IPL in a run-chase.
Earlier, skipper Gaikwad led from the front with a superb 60-ball unbeaten 108 as Chennai Super Kings posted a challenging 210 for 4 . Gaikwad's knock, his second IPL hundred, was studded with 12 fours and three sixes. Shivam Dube muscled his way to a 27-ball-66, hitting seven sixes. For LSG, Matt Henry took for 1 for 28.
Brief Scores:
CSK 210 for 4 in 20 overs (Ruturaj Gaikwad 108 not out, Shivam Dube 66, Matt Henry 1/28)
LSG 213/4 (Marcus Stoinis 124 not out).
