Lockdown and corona infection have worsened the condition of the auto industry. For the first time in history, automakers have recorded zero vehicle sales in the domestic market last month as all sales operations and production were discontinued on March 22, when the public curfew was implemented nationwide. After which the lockdown was imposed. After this, the automaker companies gave support to their dealer through instant payment clearance and advance payment.
Corona has also had an impact on vehicle components companies, which took the worst part in this lockdown. An economic package of 20 lakh crore rupees has been announced by the Prime Minister, which is 10 percent of the gross domestic product (GDP). This includes Micro Small and Medium Enterprises (MSME) and more than 80 percent of auto components manufacturers fall under MSMEs.
Component manufacturers have less cash or bank reserves to maintain their businesses during lockdown and pay their employees. The Auto Components Manufacturers Association (ACMA) had earlier requested the government for any policy or financial support for the industry. On the new economic package, the Auto Components Manufacturers Association (ACMA) had already requested the government that they need financial support for the industry.
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