Alwar: Imposition of lockdown due to COVID-19 has led to a situation of economic crisis in the country. Its impact can be seen affecting various sectors of the economy including the automobile sector.
To know how the automobile industry has been impacted due to the lockdown ETV Bharat held a special conversation with Nikunj Sanghi, former National President of the Automobile Association and National Secretary of Prime Minister Skill Development Programme.
Nikunj Sanghi said that automobile industries are divided into three categories. At number one comes the automobile manufacturers, then the people who make spare parts and other goods and third are the automobile dealers. At the same time, lakhs of families are connected to these three areas all over the country. Everyone is facing financial loss due to the lockdown.
Traders are paying taxes on their own, but for how long?
Sanghi says during the lockdown, the functioning is completely stalled. But there are many such expenses which traders are paying with their money. For example, businessmen have to pay tax to the government, electricity bill, rent, loan installment and many such expenses, which a businessman has to pay every month.
Salary given to employees after taking loans
Sanghi said that employees are being paid salaries even during the lockdown for which they depend on the dealer and the merchant. The expenses of his entire family are only from the salary. In such a situation, employees may also face problems if they are not paid during lockdown. Sanghi said that the merchant, assuming his responsibility, is running the work in some way. For that, sometimes they have to take loans too.
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He said that a discussion has been held with the government in this regard. Every month ESIC is deducted from the salary of the employees. The amount to be deposited as ESIC is more with the Central Government. The government has been asked to help the employees with the amount of ESIC.
He said that the automobile sector works as one chain. This chain is interlinked and the entire industry is incurring huge losses due to lockdown.
Showrooms are open in many red zones
According to Sanghi, there are many green zones in the country where permission has not been granted to open an automobile showroom. While showrooms are also opening in some red zones. It depends on the administration.
State borders are sealed during the lockdown. An agency also carries the burden of districts in the surrounding area. In this case, due to the sealing of boundaries, the work is stopped even after the showroom opens.
Sanghi said that in view of these conditions, the effect of lockdown will be seen in the country for some time to come. Therefore it is important to open the lockdown but there should be an increase in the investigation process so that more and more people can be screened.
