Day: May 16, 2020

Auto component makers may cut $4 billion capex by 2022, Auto News, ET Auto

COVID-19 impact: Auto part makers may slash $4 billion capex by 2022New Delhi: As novel coronavirus unfold across the state, the auto part manufacturing corporations are established to defer their planned capex of all around $4 billion until 2022 to protect income and cope with source chain disruptions, a best official of Automotive Ingredient Suppliers Association of India (ACMA) explained.

The domestic auto market is established to drop in double digits this yr and for that reason almost all the corporations in the part area are redrawing their strategic roadmap for the around phrase and adhering to the outdated mantra of ‘Cash is king’, he mentioned.

Survival and income conservation are our best precedence at present somewhat than likely for capex growth.Deepak Jain, President, ACMA

“Going forward, the the greater part of the tier-I part makers will focus extra on consolidating capacities somewhat than expanding at minimum for the small-phrase in get to protect income. Overall, I believe about $4

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