with economic activities such as mining and infrastructure projects came to a near halt.
It led to SIAM to seek stimulus package for the sector from the government but in vain.
Although the festival season did bring some cheer in terms of sale and September, recorded the highest level during the fiscal, RBI's decision to hike short term lending rate impacted interest rates on car and automobile loans thus adversely affecting the sales further.
With slowing sales, manufacturers were left with no option but to curtail their production capacities and undertake unplanned temporary plant closures.
For instance, Maruti Suzuki India (MSI) undertook a one-day production cut at its Gurgaon plant in March. It again had to take a similar one-day production shutdown in June at its Gurgaon and Manesar plants.
Similarly, M&M shut down its tractor plants at Jaipur and Rudrapur for five days and two days, respectively, due to inventory pile up amidst falling sales. It also stopped production at its automotive plants for up to eight days in July and announced in August that it would stop production at its factories in the following months.
Inevitably, when such closures happen, temporary workers are the first to be hit and MSI asked around 200 of its contract workers to go on indefinite leave in July following cut in diesel engine production at its Manesar plant.
While other companies did not openly come out about job losses, it was an open secret during the year that many contract workers took the hit along the value chain in the Indian automobile industry.
A fall out of the slowdown was impact on investments. MSI said it would miss target of commissioning its Gujarat plant, where it plans to invest Rs 4,000 crore. As per the original plans, the company had planned to roll out 2.5 lakh cars annually by 2015-16 from the Gujarat plant.
Nevertheless, other firms who had committed investments, did not back out from their original plan. Honda, which is in the process of investing around Rs 2,500 crore on manufacturing activities in India, said it will go ahead with its plans.
Tata Motors too confirmed going ahead with