Component makers face cash crunch, demand imbalance

The National Association of Automotive Component and Allied Manufacturers (Naacam) is not aware of any dedicated automotive component company that has closed its doors following the Covid-19 lockdown period, says executive director Renai Moothilal.

“But, I don’t think the full impact of the Covid-19 crisis has been felt yet. There are definitely companies that are in financially precarious positions.”

“There are continuous interactions between component suppliers, customers and supporting government agencies on how to prevent a situation where any company closes its doors permanently.”

Moothilal adds that the reopening of the automotive manufacturing sector in May, and the subsequent move to full production under Alert Level 3 in June, has prevented a situation where a number of companies would have been unable to emerge from lockdown. Full article