Workers construct a car on the general welding line in a manufacturing facility in India. (Photographer: Adam Ferguson/Bloomberg News)

Truckers’ Strike Hits Auto Industry, Affects Production

The ongoing nationwide strike by truckers has hit the automobile industry affecting supplies of parts and distribution of vehicles, which has forced automakers to adjust production.

Tata Motors Ltd. has undertaken block closures of its Pune and Sanand factories by advancing weekend holidays and compensating for it later on, according to industry sources. “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.

Ford India and Skoda Auto India too have been affected. “The transport strike is impacting both domestic movement of parts and vehicles,” Ford India President and managing director Anurag Mehrotra. “We expect it to soon impact exports too, with the container association joining the strike”.

Skoda'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 other 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, All India Motor Transport Congress and the government. The AIMTC, which claims support of 93 lakh truckers, started a nationwide indefinite strike on July 20.

Also read: GST E-Way Bill: A Glitch, A Penalty, And The Truckers’ Strike

The transporters’ demands include a reduction in central and state taxes by getting diesel under the Goods and Services Tax so that price of the deregulated commodity can be reduced.