GURUGRAM: With auto giants such as Maruti and Hero Motocorp extending their shutdowns, ancillaries too have either halted operations or are running at 10-15% strength because demand has evaporated.
The second Covid wave is threatening to slam the brakes on the sector, which is now staring at another financial jolt, with the lockdown impacting the movement of raw materials, new purchase orders witnessing a decline and most workers returning homes.
Despite the government’s orders allowing industries to operate during the lockdown, they find it hard to function. “Most of our orders come from the big original equipment manufacturers. Since they aren’t functioning right now, our operations have also been impacted,” said the owner of a city-based automobile firm.
Late last week, Maruti had issued a notice saying that it is extending its shutdown till May 16 given the pandemic situation. Similarly, Hero Motocorp has extended its shutdown till the same date.
This has led to many workers leaving, and fresh anxiety in the auto sector about when and whether they will return, especially after two successive pandemic-induced shutdowns in two years and the uncertainties of 2020 — which stirs haunting memories of lakhs of workers walking hundreds of miles during the lockdown to reach home — returning.
“We started our plant this week and are only operating with 40% manpower. We are working to fulfil orders that we had received two months ago. This month, we have received no new order,” said Sunil Pawar, who runs Allay Industries.
With several industrial workers back home, there is a shortage of manpower in the companies. “Many workers have gone home fearing a repeat of 2020. Currently, we are managing with lesser manpower due to reduced demand. But the shortage might become an issue in the coming months once restrictions are eased,” said the owner of another automotive firm in the city.
He added that the companies are facing issues in arranging passes for the movement of workers as well as their accommodation as per government rules. The state government had issued a notification stating that the industries must either arrange for workers’ stay in their premises or arrange for their transport to and from work.
