industry

Auto sector slowdown takes toll on suppliers


In the month of August, automobile manufacturing plants usually work overtime to build up inventory for the upcoming festive season. But this year automakers are observing no-production days in order to adjust manufacturing to the muted demand amidst the ongoing slowdown. Not just automakers, but suppliers to these companies too have felt the pressure of the slowdown and are shutting their plants.

“External environment remains challenging, leading to demand contraction. We have aligned our production to actual demand and adjusted the number of shifts and contractual manpower,” a Tata Motors spokesperson said.

The ongoing slowdown, the worst faced by the industry in nearly two decades, started almost a year ago and stakeholders are clueless as to when market sentiment will improve. Hopes for demand revival with the onset of the festive period starting with Onam and Ganesh Chaturthi in September too are diminishing with fl oods in some of the key markets in Kerala, Maharashtra and Karnataka.

Several hundred thousand workers have lost jobs since the onset of the slowdown.

As per data released by industry body SIAM, vehicle sales last month dropped 18.7% to about 1,825,148 units.

Auto-slowdown





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