India’s largest two-wheeler maker, Hero MotoCorp, has decided to close its manufacturing facilities for four days.
“In line with this trend, our manufacturing facilities will be closed from August 15 to 18. While this has been part of the annual holiday calendar on account of Independence Day, Raksha Bandhan and the weekend, it also partly reflects the prevailing market demand scenario,” said the company. Hero MotoCorp
has five plants in India and construction of its sixth manufacturing facility, at Sricity in Andhra Pradesh’s Chittoor district, has reached an advanced stage. After this facility starts ops, the company’s total installed capacity will be around 11 million units per annum.
Sundaram-Clayton Limited (SCL), the holding company of two-wheeler and three-wheeler maker TVS Motor has declared August 16 and 17 as non-working days for its Padi factory near Chennai.
“This is due to business slowdown across sectors,” said the company. Part of the $8.5 billion TVS Group Company, SCL is the leading manufacturer and supplier of aluminium die cast products to domestic and global automotive original equipment manufacturers (OEMS).
Auto component manufacturer Lucas TVS, part of the TVS Group, declared non-working days for its employees owing to overall industry slowdown. According to the notification posted by the company’s office here, Lucas TVS had already announced non-working days last month.
“As the lull in the industry is continuing, a situation has come to reduce the number of working days,” the notification shared with the employees said. Following the development, the company said it has declared non-working days for August 16 and 17.
“A decision will be taken on how to offset the job losses on the non-working days. Employees are requested to extend their cooperation,” added the notification.
Mahindra & Mahindra (M&M) has already announced the closure of its plants for 8-14 days in July-September. Similarly, Tata Motors
has announced closure for eight days, Maruti Suzuki will close for three days, Toyota Kirloskar also for eight days, Bosch for 10 days, Jamna Auto for 20 days, and Wabco for 19 days, according to reports. During April-July, total production of the auto sector
dropped by 10.65 per cent to 97,24,373 units against 10,883,730 units a year ago. During the same period, total domestic sales dropped by 13.90 per cent to 7,910,554 units from 9,187,965 units, a year ago.
Among the worst hit was medium and heavy commercial vehicle (M&HCV) production, which dropped by 22.35 per cent to 110,224 units against 141,958 units, a year ago. Passenger vehicles dropped by 13.18 per cent to 12,13,281 units from 13,97,404 units, a year ago.
Two-wheeler production dropped by 9.96 per cent to 7845675 units from 8713476 units, a year ago.
According to auto industry
body Society of Indian Automobile
Manufacturers (SIAM), almost 15,000 jobs, mostly temporary and casual workers, have been lost in the automobile
manufacturing sector over the last two to three months.
Meanwhile, Federation of Automobile
Dealers Associations or FADA said around 200,000 jobs have been cut across automobile dealerships in the country in the last three months.