Fearing a slowdown, Automobile Component Manufacturers Association (ACMA) has urged the government on formulating a 2-3 year "bridge policy" to enable the industry survive the current economic crises. ACMA stressed the government to provide some immediate relief to the auto-component industry to sustain their growth over the next few months to ensure that the momentum built over the last 5 years is continued to meet the vision of the AMP 2016.

At an emergency meeting of ACMA's Executive Committee, ACMA president, J S Chopra referred to the problems like delayed payment by OEMs, difficulty in getting loans and delayed disbursement of already approved loans — especially in the case of small and medium component manufacturers — to support the organisation’s demand.

ACMA also suggested that the customs duty on key raw materials should be reduced to zero. It further stated that there should be no disruption in ongoing and approved funding by banks for capex requirements. The body wants the government to take some immediate steps to support liquidity and should evolve special loan schemes at concessional rate of interest. ACMA is also anticipating further CRR and SLR cuts by RBI.

The prices of imported raw material have increased by 14% due to the weak position of rupee against the US dollar. According to an estimate, the global economic crises has ensued a shortfall in the production of commercial vehicles by 35-40%.