Indian auto parts maker braces for plant shutdowns amid industry-wide crisis

ZF Commercial Vehicle Control Systems India

08/08/2019 13:39

BENGALURU, Aug 8 (Reuters) - India's Jamna Auto Industries
Ltd  JMNA.NS , 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
 BOSH.NS  and Wabco India Ltd  WABC.NS , 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.  urn:newsml:reuters.com:*:nL4N2524GX
    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  GM.N , Toyota Motor Corp  7203.T  and Tata Motors Ltd
 TAMO.NS , 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 https://www.bseindia.com/xml-data/corpfiling/AttachLive/074dc174-77bf-4ed4-8cfb-43899d2eb778.pdf
 to the exchanges.
    The company has nine manufacturing facilities across the
country.

 (Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu
Sahu)
 ((chris.thomas@thomsonreuters.com; +91-80-6749-8695; Reuters
Messaging: chris.thomas.thomsonreuters.com@reuters.net))