Auto components industry seeks govt support to withstand COVID-19 impact

Auto components industry body ACMA on Friday said it is taking a hit of around Rs 1,200 crore per day due to the lockdown owing to coronavirus pandemic, and urged the government to come up with a financial package, including relaxation in borrowing norms, in order to survive the current situation.

Terming the current situation as unprecedented, the Automotive Component Manufacturers Association (ACMA) said its member companies despite facing challenging times are taking all possible steps to safeguard the interests of their respective workforce.

"The auto component industry stands by the government in this hour of challenge. However, with complete stoppage of production in the vehicle industry and scarcity of working capital, the situation in the component manufacturing units, including the tier-2s and tier-3s has become quite acute, threatening their survival," ACMA President Deepak Jain said in a statement.

He further said, "We have requested the government for helping us with immediate relaxation of borrowing norms andstatutory payments, extension of moratorium on payment of principal and interest of loans for a year, among others."