Truckers' strike hits auto industry, affects production - The Financial Express

Truckers’ strike hits auto industry, affects production

The ongoing nationwide strike by truckers has hit the automobile industry by affecting supplies of parts and distribution of vehicles, forcing companies like Tata Motors, Ford India and Skoda to adjust production.

By: | Published: July 26, 2018 10:22 PM
truck strike, nationwide strike of truck, Tata Motors, Sanand plants, AIMTC, GST, automobile industry According to industry sources, Tata Motors has undertaken block closures of its Pune and Sanand plants by advancing weekend holidays and compensating for it later on. (IE)

The ongoing nationwide strike by truckers has hit the automobile industry by affecting supplies of parts and distribution of vehicles, forcing companies like Tata Motors, Ford India and Skoda to adjust production. According to industry sources, Tata Motors has undertaken block closures of its Pune and Sanand plants by advancing weekend holidays and compensating for it later on.

"Even retail has started getting impacted as dispatches of finished vehicles to dealers are affected," a source said. When contacted Tata Motors spokesperson declined to comment citing silent period ahead of the company's upcoming first quarter result. When contacted, Ford India President and MD Anurag Mehrotra said: "The transport strike is impacting both domestic movement of parts and vehicles. We expect it to soon impact exports too, with the container association joining the strike." He further said, "Given its impact on not just business but livelihoods, we urge the government and the associations to resolve this issue at the earliest."

Skoda Auto India's Aurangabad plant was also closed today due to supply constraints of parts. "Normal production will be resumed from tomorrow at the plant," a company spokesperson said. Comments from major players such as Maruti Suzuki, Hyundai Motor India and Mahindra & Mahindra could not be immediately obtained.

The nationwide strike by transporters continued for the seventh day today with no breakthrough between truckers' union, AIMTC and the government. The All India Motor Transport Congress (AIMTC), which claims support of 93 lakh truckers, started a nationwide indefinite strike on July 20. The transporters' demands include a reduction in central and state taxes by getting diesel under the GST so that price of the deregulated commodity can be reduced.

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