COVID-19 impact: Automotive suppliers in India to put USD4 billion worth investment on hold until 2022
Survival and cash conservation are our top priority rather than going for capex expansion, said ACMA president Deepak Jain
Automotive suppliers in India are likely to defer their planned capital expenditure of USD4 billion until 2022 as they stare at unutilized capacity due to low demand and shift focus on preserving cash amid the COVID-19 pandemic, a top official of the Auto Component Manufacturers Association of India (ACMA) told the ETAuto. “Going forward, the majority of the tier-I component makers will focus more on consolidating capacities rather than expanding at least for the short-term in order to preserve cash. Overall, I think about USD4 billion of capital expenditure is at risk from the auto component makers for the next two years,” Deepak Jain, president of ACMA said in a virtual roundtable organised by the business newspaper.