Last year ended on a sour note for 42-year-old Sugriv Gaikwad, when his company, an auto ancillary unit in Pune, declared a lockout on account of reduced demand. ?Life came full circle for me. I had left my hometown, Beed, 17 years ago in search of a living. After years of struggle, I found myself at the same point again,? he recalls. Gaikwad served as a forgings press operator with Amforge Industries, which supplied components to the likes of Tata Motors and Bajaj Auto. The company was one of the auto ancillary units in the Pimpri-Chinchwad industrial belt and original equipment manufacturers (OEMs) across the country that was forced to shut down production during the recession.

About 3,500 small-scale ancillary units in this belt of Pimpri-Chinchwad were forced to shut shop for three days to a week. Production schedules for most auto OEMs in the region were down by almost 50-60% and some 50,000-60,000 temporary contract workers at auto ancillary companies lost their jobs.

Last November, India?s auto sector was struggling with the fallout of the financial crisis, driving the economy to its lowest in six years. Domestic commercial vehicle sales had declined by 9.5% in April-November 2008, as compared to the same period in 2007. Car sales had started to decline in the second half of 2008 following increased financing costs and lack of credit availability. Domestic car sales had remained flat at one million units for the April-November 2008 period. Slower demand led to inventory pile-ups, both at the dealer level and at the plants, resulting in production cuts.

Gaikwad was in a similar position. His company managed to open this year, but this meant a 50% cut in salary (around Rs 3,200 a month). Gaikwad had two options?return to his village or fight it out. ?I realised going back would not have solved our problems. We have some land in Beed, but it is a drought-prone region. This would have meant a bigger struggle,? he recounts. Meanwhile, his wife Kalavati managed to find work in a local rubber-making unit polishing rubber rings used in pressure cookers, mixers and automakers. Polishing 1,000 rings a day would bring the family Rs 50.

Gaikwad had earlier acquired a shop act licence and a service tax number for supplying temporary labour to local industries, which he put to use. He began supplying labour to large companies such as Bharat Forge, Mahindra & Mahindra and Kalyani Thermal in Chakan. ?Sometimes, I ended up joining as casual labour simply to touch base with the shop floor manager,? he recalls. For every worker who was hired, Gaikwad received Rs 5.50 as commission. The workers made Rs 165 per day. He began by employing five to six workers daily and slowly moved his way up to 20 workers. On Thursdays, the weekly industrial holiday, he managed to get as many as 40-50 workers to finish maintenance work in these companies.

Fortunately, the slum he lived in had several men in search of work. Word of mouth spread and they started coming to him. Gaikwad considers this a minor victory. ?This was what I had wanted to do all my life?work on my own. The recession and the closure of the company turned out to be a blessing in disguise,? he says.

Gaikwad?s fortunes are inextricably linked with the Indian auto sector. Auto sales recorded a superlative performance this year after the festive season, riding on the back of upbeat consumer sentiment and economic recovery. Sales surged 71.9% in November 2009 from a year earlier, to 2,07,500 vehicles. November sales of passenger cars grew an impressive 66.54%. The industry sold 1,66,653 units. Large commercial vehicle sales, which turned positive in August, held on to this trend. November sales of large trucks and buses grew by 132.66 % and the industry sold 19,369 vehicles against 8,325 last year.

Total commercial vehicle sales, including lighter vehicles, stood at 40,847 units in November 2009?98% higher than those posted last year. Two-wheeler sales grew as well. Motorcycle and scooter manufacturers together sold 7,90,613 units.

Maruti Suzuki India Ltd, the largest automaker in India in terms of sales volume, saw 67% increase in its November sales, as its total sales volume stood at 87,807 units. Domestic sales rose by 60%, while exports increased two-fold. The company saw heavy demand for its small car models, including A-Star, Alto, Wagon-R, Estilo, Ritz and Swift. Hyundai India posted its highest November sales last month, as its sales increased 29% to 55,265 units.

In the two-wheeler market, Hero Honda scripted a 32% increase in November sales to 3,81,378 units, while its rival TVS Motor posted 23% growth in its November sales to 1,20,844 units. Bajaj Auto reported a 73% rise in its two-wheeler and three-wheeler sales for November 2009 at 2,76,759 units, against 1,59,747 units for the same month last year. The company?s motorcycle sales grew by 84% at 2,42,390 units in the month, as compared to 1,31,681 units for the same month in the previous year.

There?s also talk of new products and launches. The Bajaj-Renault-Nissan alliance has been talking about new projects. In the electric vehicle sector, Reva Electric Car Company joined hands with General Motors to roll out electric variants of its Chevrolet Spark small car in India and select overseas markets. Mahindra & Mahindra has been readying for the launch of its first truck next month under a joint venture with Navistar, North America?s largest commercial truck maker.

The year also saw car makers seek market share in the small car segment dominated by Maruti Suzuki, Hyundai and Tata Motors. Early next year, four new models will start rolling out from the plants of Ford India, Nissan Motor India, Volkswagen India and General Motors India. The new models?Ford Figo, Nissan Micra, Volkswagen Polo and Chevrolet Beat?will hit the road in the first half of 2010. American icon Harley Davidson has also decided that this is the right time to enter India. US automaker General Motors is mulling an entry into the commercial vehicle sector through its Chinese partner, Shanghai Automotive Industry Corporation (SAIC).

For people like Gaikwad, this brings good tidings. ?This year has been among the worst that I have seen. But things are now beginning to look up. From a year where companies shunned workers, I am now seeing companies seeking skilled labour,? he says.

The next year should be a good year for him. If he manages to supply more workers, he can make anything around Rs 20,000. And, his wife would not have to polish rubber rings any more.