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Indian auto parts maker braces for plant shutdowns amid industry-wide crisis
India’s auto sector is facing a downturn, which experts say is the worst suffered by the industry, triggering massive job cuts and factory shutdowns.
India’s Jamna Auto Industries Ltd, a maker of springs used in vehicle suspensions, said on Thursday it might shut all its plants in August due to weak demand from its customers, underscoring the extent of a slowdown in the auto sector.
The company, one of India’s largest makers of tapered leaf springs and parabolic springs for automobiles, joins a growing list of auto components manufacturers, including Bosch Ltd and Wabco India Ltd, that have trimmed production amid a demand slump.
India’s auto sector is facing a downturn, which industry executives say is the worst suffered by the industry, triggering massive job cuts and factory shutdowns.
Initial estimates suggest that automakers, parts manufacturers and dealers have laid off about 350,000 workers since April, a senior industry source told Reuters earlier this week.
New Delhi-based Jamna Auto’s customers include General Motors Co, Toyota Motor Corp and Tata Motors Ltd , India’s largest automaker by revenue, according to the company’s website http://www.jaispring.com/customers.htm.
“In view of the weak customer schedule and high inventory, the company has made changes in production schedule at all its plants. The plants may not run or partially run on all working days in August,” Jamna Auto said in a filing to the exchanges.
The company has nine manufacturing facilities across the country.
(The story has been published from a wire feed without any modifications to the text, only the headline has been changed)
