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Another lockdown will hit automakers hard, affect capex plans: CARE Ratings

Several state governments have been announcing lockdown again in select areas for different time periods to check the Covid-19 pandemic

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The automobile sector was already grappling with soft consumer demand in FY20

3 min read Last Updated : Jul 15 2020 | 11:49 PM IST

In the eventuality of another spell of a pan-India lockdown, the automobile sector will continue its downwards trajectory, which will seriously affect workforce and OEMs may have to further delay product launches and capex plans, CARE Ratings said in a report.

Several state governments have been announcing lockdown again in select areas for different time periods to check the Covid-19 pandemic amid rising numbers of infection cases in the country.

The automobile sector was already grappling with soft consumer demand in FY20. Additionally, the strict enforcement of government rules to adopt new emission standards led to original equipment manufacturers (OEMs) hiking their

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