highlightsdealerships shut due to 21day national lockdown dealers required to pay their employees maintenance cost interests high investment businesses incur high losses new delhi the 21day lockdown coupled with jeopardising rs 6400 crore worth of unsold bsiv inventory pileup has resulted in huge losses at auto dealerships which will continue to pay regular salaries to their employees along with the maintenance cost and interestsour dealership business was healthy during the first 10 days of this month post that customer footfalls started to reduce with an increasing cost of hygiene maintenance and a few employees leaving to go back home to their villages eventually with the governments directives of lockdown we had to shut down told a major dealer partner from the south supreme court has ordered that auto dealers will be able to sell 10 percent of their unsold bsiv inventory in the country for 10 days post the 21day lockdown with a substantial loss of about 70 percent of the total cost of dealership auto dealers are facing huge losses at their endjs fourwheel having a total of 28 dealership workshops and 19 showrooms he added that the overall losses have ranged as high as rs 12 crore for this month alone advt of the total cost of dealership 40 percent is the core employee cost while 30 percent is the cost of holding the inventory explained nikunj sanghi of js fourwheels while adding with a substantial loss of about 70 percent of the total cost of dealership auto dealers are facing huge losses at their endtalking about the impact of the lockdown ashish harsharaj kale president fada had said counter sales have fallen by as high as 6070 percent across automobile dealerships the situation has aggravated over the past few days with partial lockdown in many towns and cities which are also our prominent marketsexperts believe that businesses all over the country are in a state of turmoil but since auto dealerships are high investment businesses they are bound to incur high losseswith an inventory pileup of 2350 bsvi units we had a target of making around 2000 retail sales until marchendprem motors most auto dealers that etauto talked to are looking for a subsidy from the government or reduction in interest rates by the banks to survive these difficult timeswith a recurring cost of dealership rent employee salary and interest rates we have a minimum loss of rs 30 lakh per day said charanjeet nagpal of prem motors while adding this amounts to a loss of over rs 6 crore for the upcoming 21 days advt with an inventory pileup of 2350 bsvi units we had a target of making around 2000 retail sales until marchend he addedaccording to data from the federation of automobile dealers associations fada bsiv twowheeler dealers have about 700000 units while passenger and commercial vehicles inventory stands at about 12000 and 7000 unitsmeanwhile the supreme court on friday gave a relaxation with some added restrictions the order allowed selling of 10 percent