The Indian automotive industry is one of the key drivers of our economy as it contributes to 7 per cent of the GDP. The auto sector also creates employment for more than 3.7 crore people in a direct as well as indirect ways. Additionally, the industry also plays a crucial role in exports because it ships out USD 27 billion worth of vehicles and components on an annual basis. However, the Indian auto space has been seeing a downfall in sales for more than 15 months. And, the lockdown situation due to Coronavirus pandemic has made things even worse.
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ACMA, SIAM & FADA says the auto industry should be treated as essential services during the lockdown
In a bid to infuse life back into the industry, the Automotive Component Manufacturers Association of India (ACMA), the Society of Indian Automobile Manufacturers (SIAM) and the Federation of Automobile Dealers Associations (FADA) have jointly approached the Ministry of Home Affairs to provide permission to resume operations in complete unison. The three apex chambers representing the entire automotive value chain requested the ministry to re-commence operations for vehicle manufacturers (OEMs), component suppliers, dealers, service workshops, and Regional Transport Authorities.
Focusing on the concerns related to the spread of COVID-19, the apex bodies also reassured the ministry that entire auto industry has created detailed safety SoPs and they will adhere to the guidelines of social distancing as prescribed by the government with utmost sincerity.
Every player across the sector from the component suppliers to dealers, is facing the challenge of staying solvent. The sector is losing revenue of Rs. 2,300 crore per day, approximately. The apex bodies also underlined that a vehicle manufacturer cannot re-commence its operations if any one of its suppliers is not able to kick start operations
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