Auto Manufacturing Plants will Need Government’s Help Amidst Corona Crisis
The Automobile manufacturers and their component manufacturers and suppliers had to shut down the production of automobiles uncertainly due to the huge losses they were facing due to the corona virus pandemic outbreak in India. Neeraj Kanwar, vice chairman and managing director, Apollo Tyres Ltd says that the government should take some measures for the auto manufacturers announce a bailout package for this sector to tide over the current crisis amid the lockdown.
Kanwar says that the outbreak of the pandemic can turn into an advantage in India as it may attract more investments after the crisis is over only if there is an ease in running the business and improvements in systems and infrastructure. He also stated that the company Apollo tyres had been selling shares to control the debts but won’t be doing it anymore.
He says that RBI needs to take further steps to help people sustain the crisis and there is a very positive measure taken by the central bank of India to create liquidity of ₹3.5 lakh crore which is the need of an hour. And they are waiting for the government to take action for helping the companies like theirs. They have taken measures for the small and medium business by creating this liquidity to help them run, but should also consider to help for the corporates (entities) like theirs.
All of their plants are being shut for now and they also have employees and other expenses to take care for during the corona Virus outbreak. Since safety of people is an important issue, the companies and manufacturing plants have been shut down though there is a need for governments even after these companies will take care of themselves up to a certain point.
He states that now is the time to create more demand in the market, and hence increase the supply go after market share and create more cash flows.