Three main automotive industry bodies in India – Society of Indian Automobile Manufacturers (SIAM), Automotive Component Manufacturers Association of India (ACMA), and Federation of Automobile Dealers Association (FADA) – came together on Friday to seek approval from the government to resume operations. In the letter addressed to the Home Secretary, the industry bodies seek restarting the entire value chain that includes vehicle manufacturing, components, dealers, and service workshops.
The letter jointly submitted by ACMA, SIAM, and FADA to Home Secretary Ajay Bhalla states that the automotive value chain is highly integrated and interdependent and that a manufacturer cannot resume operations if any one of the suppliers is unable to restart production. It further points out that if dealers are not allowed to sell vehicles, production would only amount to piling up of inventory.
“The industry needs to be treated akin to ‘essential services’ and be allowed to function as had been done in case of Steel and Cement sectors.”
About the concern of COVID-19 spread, the letter dated 1 May also marked to Heavy Industries Secretary Arun Goel states “let us reassure you that the entire industry has created detailed safety SoPs and these together with social distancing norms as prescribed by the government will be adhered to with utmost sincerity”.
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Highlighting that the industry is losing Rs 2,300 crore per day, the industry bodies urged that the starting of economic activity in the sector is therefore critical.
‘Considering the fragile health of the automotive industry, as also its economic contribution, we are writing to request you to kindly allow the entire automotive value chain for opening up and re-commencing operations. This would include the vehicle manufacturers (OEMs), the component suppliers, the dealers, the service workshops, and the regional transport authorities. In fact, auto dealerships/workshops will not be able to open till such time the citizens are not allowed to come out of their homes freely.’
