The auto component industry in Chennai is facing a strange slowdown and many major units have announced temporary lock outs and voluntary retirement schemes.
On August 18, K. Pandiarajan, Tamil Nadu Minister for Tamil official language, Tamil culture and Archaeology posted an unusual tweet in response to a newspaper report that the automobile sector would shed about five lakhs jobs in the next quarter:”warning, signal, especially for Tamil Nadu which has the highest concentration of auto sector in India- Central government to act fast announcing fiscal and other incentives to save the jobs!”
The tweet was unusual because Ministers in the Tamil Nadu cabinet or in the party that currently runs the state, the All India Anna Dravida Munnetra Kazhagam (AIADMK), have rarely said anything that is not complimentry to the Narendra Modi government at the Centre. His tweet immediately bought forth an outbreak of responses from pained executives in the industry and owners of automobile ancillary firms in the state who have been feeling the pinch. One senior industry expert, K.Srinivasan said,” SIAM (Society of Indian automobile manufacturers), the central auto body of India, have declared sale numbers. In every segment we have lost volumes and these are the highest across segments. The job creation of direct to indirect is 1:10 in the auto segment. Serious cause of concern”.
Another person, who said he runs a component industry, SRS Auto Tech, responded: “I am running a small scale industry. This month till date no orders no work. But my expenditure is same 35000 rent, 85000EMI, 35000salary. I don’t know how to tackle this situation. I am from Tamil Nadu.” An auto component manufacturers in Chennai confirmed that the slowdown was real. “I supply small component of the axle. A company used to require about 10-12 lakh pieces of the component that I supply. Now it is down to less than half the number. My orders are down too, but I am one off the better-off people”, said the manufacturer who did not wish to be named.
Namrata Vijay 