Auto component makers are uneasy over the strike at Maruti’s Manesar plant.

Suppliers are shocked at the violent turn of events at the country’s largest car-maker and say they have no option but to “wait and watch”.

Last year, when production was stopped at Manesar due to the workers’ strike, many suppliers got hit, said a South-based component maker who did not wish to be named owing to the “sensitivity” of the issue.

“The component industry hopes there is no repeat of last year,” he said.

Companies such as Wheels India and Rane are big suppliers to Maruti.

Rane group company, Rane NSK Steering Systems, has an electric steering plant in Bawal, Haryana which supplies primarily to Maruti. Last year, when the Maruti workers had gone on strike in Manesar, this ancillary’s business and production was hit.

Wheels India too has an exclusive plant in Haryana for Maruti. While supply to the Manesar plant has stopped, it continues to supply to Maruti’s plant in Gurgaon.

Mr Srivats Ram, Managing Director, Wheels India hopes the situation is sorted out amicably.

Mr Abdul Majeed, Auto Practice Leader, PricewaterhouseCoopers, says when there are disturbances at the vehicle makers’ end, it has a cascading effect on the supply chain. “If the issue is sorted out in a few days, suppliers can tide over the problem. But if the issue drags on for weeks or months, then the supply chain will be impacted. Inventories will pile up and raw material will be stuck with component suppliers.”

(This article was published on July 20, 2012)
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