Coronavirus Impact: State Governments Order Few Auto Dealerships To Halt Operations

Select state governments in India have ordered two- and four-wheeler dealerships and workshops to halt operations to prevent the spread of coronavirus. The order comes less than 15 days before the BS6 deadline of April 1. Dealership associations and major automotive organisations will appeal to the Supreme Court for an extension of the deadline for selling BS4 vehicles.

Currently, vehicle dealerships in India are concentrating on clearing their BS4 stock. Showrooms in Ganjam, Orissa, and two in Pune, Maharashtra, have been ordered to temporarily cease operations. Car and bike dealers acknowledge that the coronavirus outbreak has reduced footfall in showrooms. The shutdown furthers the possibility that India will be left with a large inventory of BS4 vehicles after March 31.

The coronavirus outbreak is the latest among a series of problems that the Indian automotive industry has been grappling with since 2019. A demand slump last year created stocks of unsold vehicles. The switch to BS6 necessitated investments in research and development amid a worsening global economic climate.

COVID-19 is a strain of coronavirus, which had not been identified in humans before. It causes respiratory illness, fever, and in some cases, death. It has affected more than 1.82 lakh people and resulted in 7,100 deaths globally. Experts suggest ‘social isolation’ to prevent the spread of disease. Although the government’s order is a preventive measure, it is bound to hurt the automotive industry.

Governments around the world are working on containing the spread of the virus. However, they are finding ways to balance shutdowns while maintaining economic operations. We hope to see more contemplation from the legislation and more continuous efforts to combat the spread of coronavirus.

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Also Read: Coronavirus Symptoms & Precautions in India