1200 crore loss per day to auto component sector

Mumbai, Ta. 28 March 2020, Saturday

Due to the lockdown, the auto component industry of the country is losing Rs 5 crore daily. In view of this fact, the automotive component manufacturers association of the industry has demanded from the government to declare a financial package for the industry. The current situation is unprecedented and the component industry is making every effort to protect the interests of its employees.

Component production units have had a direct impact on the completion of the vehicle production, which has also caused a huge strain on Wakag Capital. It will be difficult for the industry to survive if the government does not disclose appropriate measures in a timely manner, a statement issued by the association said.

It has also demanded that the EMI for loans be extended to one year.

It has also been introduced to the government to provide concessions in electricity rates and demurrage charges. Products have been implicated in auto companies across the country due to a three-week lockdown. Companies facing cash flow are facing challenges. Component industry is facing a loss of Rs 1 crore to 2 crore daily.

Despite the financial strain, three component production companies have decided not to cut the salaries of the employees. It has also been reported that some companies have developed alternatives to produce the necessary equipment such as facemasks, sanitizers.

The contribution of component industry to the GDP of the country is about 0.5% and it provides employment to 5 lakh people. The industry's turnover in the last financial year was $ 2 billion and exports were $ 2 billion.