It is shocking that over 10,000 workers of the auto-parts industry lost there jobs in past one and a half month due to unprecedented fall in vehicle sales in Rajkot.
As quoted by a report of Times of India, Industry sources said that the demand has fallen, production too has been cut down and the number of working days in a week reduced in the last one month.
“The demand for auto parts has plummeted by nearly 50%. We are sustaining only on exports,” said Paresh Vasani, promoter of Turbo Bearings and president of Rajkot Engineering Association. The company, which was working in three shifts for 24 hours, has curtailed production and operating two shifts only.
The units, most of which are small-scale industries (SSI), employ around one lakh people.
According to industry body Society of Indian Automobile Manufacturers (Siam), a total of 2.39 lakh passenger vehicles (cars, UVs/SUVs and vans) were sold in May 2019, which was 21% down from three lakh units in the same month during the previous year. Passenger vehicle sales were also down 17%.
Rolex Rings, another big player in auto components industry, has also decreased the number of working hours. “The demand for auto components has fallen between 30 to 50% in the past three-four months. The only silver lining is robust orders from the US.