The Automobile Dealers Association of Kerala has said the automobile market which was in a downturn before the onset of the Covid-19 outbreak is further heading towards severe crisis.
The auto sector in general has been struggling for the past two years. Compounding this, Kerala has been facing floods for two consecutive years. Now, it is the turn of Covid-19.
The auto retail sector has already been reeling with high-interest rates and operating costs. Many dealerships shut down business last year, resulting in a large number of job losses, Kerala Automobile Dealers Association Secretary Manoj Kurup said.
“We feel that it would take another 8 months for the market to recover from the current crisis. The auto retailer market, which employs more than one lakh workers, has not received any support from manufacturers or the government. No relief measures or other rescue policies or packages have been announced for the sector. The Indian automakers, including Maruti, Hyundai, Mahindra, and Honda, are only paying the outstanding dues.
“In this scenario, the fate of dealerships and jobs of over one lakh workers hangs in balance. The government must declare tax cuts and rescue packages urgentlyto sustain the automobile market.” Kurup said.
The Chief Minister should intervene and take remedial measures including in the matter of rent exemption. Urgent action is needed to avert shut down of many institutions in the sector, he said.