ACMA calls for urgent financial stimulus to help component makers

The Auto Component Manufacturers Association (ACMA), the apex body representing the component manufacturers in India today welcomed the guidelines issued by the Ministry of Home Affairs, Government of India to be adopted for containment of Covid-19 epidemic.

While the vehicle manufacturers have been facing slowdown and unrest for a while now, the challenges for the Indian component makers had started much earlier. The domestic auto industry which has shut down manufacturing activities on the back of the instructions given out by the Central government was hopeful of getting relief under the graded relaxation starting from April 20. But with the automotive sector missing out in the list of companies that are allowed to resume operations, the segment could face a huge impact.

Explaining the industry body ACMA’s position on resuming operations in the auto component sector, Deepak Jain, president, ACMA remarked, “The guidelines issued by the Ministry of Home Affairs are indeed very comprehensive and detailed. ACMA stands firmly by the government in this hour of crisis and would abide by its directive. Health, safety and welfare of our employees is foremost on our minds. We are also in touch with our customers, the OEMs and resumption of our operations would be aligned to their commencing operations as also on the directions from the local authorities.”

“It should be noted that the automotive value chain is highly complex and integrated one. Nil revenues in the auto component industry in the lockdown period has deepened the state of crisis in the industry and several enterprises are staring at insolvency.  We urge the government for urgently infusing financial stimulus, based on our recommendations, to ensure that the industry has safe and sustainable operations post the lockdown,” said Jain.

READ MORE: Push to Make in India campaign to be key differentiator for India Auto Inc after lockdown

SIAM, ACMA, FADA presidents and Tata Motors' Rajendra Petkar: Collaboration is the way ahead for people, plants, performance

ACMA's Deepak Jain: 'It'll now be survival of the fittest and the need to collaborate to stay relevant.'

Tata Motors' Rajendra Petkar: 'Pandemic paving the way for significant collaboration opportunities.’

SIAM's Rajan Wadhera: Industry may see 50% sales decline over two years

FADA's Ashish Kale: Reviving auto industry vital as it has a multiplier effect on sentiment