MUMBAI : Several micro and small auto parts suppliers, categorised as tier 2 or 3, or even smaller in the supply chain, fear shutdowns as liabilities, including wages, inventory costs, unutilized production capacities, interest on loans and other fixed overheads, continue to rise, industry executives said. “As the working capital dries up, many MSMEs may shutdown.
Many small tool rooms, which function like MSMEs and are a critical link in the value chain, are also struggling for survival," said Ashim Sharma, partner at Nomura Research Institute.
While the government announced several measures for MSMEs as part of its stimulus package, auto industry suppliers said the steps have not done much to revive demand or address major concerns, such