'Auto components industry taking a hit of around Rs 1,200 cr/ day'

Auto component manufacturers, especially the tier-2 and tier-3, are facing severe hardship on cash flow front, which if not immediately addressed will lead to insolvency of several companies.

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.

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