Industry Body Seeks Financial Package For Auto Component Sector, Says Many Firms Staring At Insolvency

Auto component industry body Automotive Component Manufacturers Association of India on Wednesday asked the government to urgently provide financial support to the sector and said that with nil revenue due to the lockdown, many of its small- and medium-sized firms are staring at insolvency.

While endorsing the new guidelines issued by the home ministry for the extended lockdown, Auto Component Manufacturers Association of India President Deepak Jain said the components industry "firmly stands by with the government in this hour of crisis and would abide by its directive".

He, however, said, "Nil revenues in the auto component industry in the lockdown period has deepened the state of crisis in the industry and several small and medium enterprises are staring at insolvency."

Jain further said, "We urge the government for urgently infusing financial stimulus, based on our recommendations, to ensure that the industry has safe and sustainable operations after the lockdown."

Spelling out ACMA's position on resuming operations in the auto component sector, Jain said, "Health, safety and welfare of our employees are foremost on our minds."

He further said, "We are also in touch with our customers and the OEMs (original equipment manufacturers), and resumption of our operations would be aligned to their commencing operations as also on the directions from the local authorities."

Jain said that "the automotive value chain is highly complex and integrated one".