Already Struggling Auto Sector Now In Shambles After Lockdown
The automobile sector of the country was already in a crisis, but due to the coronavirus pandemic, the backbone of this sector has been broken. A survey by CARE Ratings shows that vehicle sales have fallen by 88.9% in May this year compared to last year.
According to the Federation of Automobile Dealers Association, for the first time in the history of the automobile sector, not a single vehicle was sold in the month of April.
The lockdown started in the country from 25 March which lasted till 20 May. This is the reason that in these two months, the sale of vehicles almost came to a standstill. In the last week of May, some vehicles were sold. According to a CARE rating survey, in May 2020, two-wheelers sold 88.8%, three-wheelers 96.3%, commercial vehicles 96.6%, passenger vehicles 87%, and tractors 75.6%.
These figures show that the biggest decline has been in the sales of three-wheelers and commercial vehicles. The automobile sector is a major source of employment in the country. It is believed that millions of people have been unemployed due to the breakdown of this sector.