GM's bankruptcy may hit Indian auto component exports

Though General Motors India assured that company's India operations will not be affected by the filing of bankruptcy of its parent company, industry experts fear about the exports. They are of the view that the development will lead to surplus capacity and payment delays in the domestic market.
Surinder Kapur, chairman and MD of parts maker Sona Group agreed that as the outcome of the bankruptcy around 11-12 plants and vehicle models will be discontinue. Those who are supplying auto parts to that model or plant, would be impacted for sure. Another industrialist Shriram Pistons MD AK Taneja added that the industry is already under pressure due to surplus capacity and the new development will add more to the burden. Several Indian component makers had insured themselves against loss of orders and delayed payment on account of the US automaker's bankruptcy. But many were not able to get insurance cover. Auto Component Makers Association (ACMA) secretary-general Vishnu Mathur said the companies who have not got the insurance cover might face delayed payments.