NEW DELHI : The domestic automobile industry might resort to cuts in spending on research and development (R&D) and also exit unprofitable businesses and segments with the coronavirus pandemic taking a toll on companies' revenues and cash flows, according to a report by Deloitte.
The reduction in R&D activities may impact progress made in the alternative fuel technologies till now, the report noted. "The COVID-19 lockdown has had a multiplier effect -- the industry has been at a complete standstill since March 24.
A prolonged truncation of consumer demand due to the lockdown is significantly affecting auto sector revenues and cash flows," Deloitte India Partner and Automotive Sector Lead Rajeev Singh said.