Rohtak / Ludhiana: The entrepreneurs of auto parts manufacturing sector in Haryana and Punjab states while talking to The Financial World expressed worry suspecting drastic drop in sale of their products due to fast arrival of e-automobiles in the process of manufacturing by large number of automobile manufacturers in the country likely to adversely affect their future business suspecting a drastic drop in their sale. Most of the auto parts manufacturers at Rohtak in Haryana and Ludhiana in Punjab manufacturing auto parts at present has started looking for a change in their manufacturing alternate products to remain in business.
According to information, there are thousands of micro, small and medium enterprises manufacturing auto parts at Rohtak, Faridabad and Gurugram in Haryana state most of them working as original equipment manufacturers (OEMs) for large number of automobile companies not only in India but also exporting to other countries. There are thousands of auto parts manufacturing units in Punjab also at Ludhiana, Jalandhar, Phagwara and other districts in the state supplying auto parts to automobile manufacturers as well as replacement markets in the country were seen in the state of worry about their future likely to have severe shrinkage in their business since there are nearly 2000 moving parts in a automobile requiring frequent replacement due to wear and tear, whereas in case of e-automobile vehicles there are lesser number of moving parts in the vehicles having lesser wear and tear likely to have squeezed future replacement market in these automobiles.
Information reveals, there are more than 2000 small and medium units manufacturing auto parts in Punjab doing business for amount worth over Rs 10000 crore annually, but due to non-availability of amenities they are unable to face challenges, moreover these units are facing severe challenges from spare parts being imported from China causing severe crisis to auto parts manufacturers in Haryana and Punjab states due to their lesser prices as compared to locally manufactured products.
According to Avinash Gupta former chairman of Association of Indian Forging Industries, government should prepare a future road map timely due to fast changing trend. The president of Apex Chamber of Commerce & Industry Rajnish Ahuja told that the automobile manufacturers are frequently introducing different models of vehicles in their range severely affecting replacement market of spare parts presently reduced up to 50-60 percent. Meanwhile, President of Automobile Association of India Gurpragat Singh Kahlon said that recently government has withdrawn 15% export duty on steel as such manufacturers are worried over hike in production cost of auto parts. Information reveals that total sale of auto parts business in domestic market in the country has been recorded as 57 Arab Dollar having export for value worth Rs 19 Arab Dollar as per data available up to year 2021 and the industry providing employment to nearly 50 lakh persons in the country at present and total sale of auto parts in the country is likely to expand to nearly 200 Arab Dollar by the year 2025 due to fast rising number of automobile vehicles in the country.
