Toyota Kirloskar Motors and Honda SIEL Cars India are worried about the current truckers’ strike and will take corrective measures if it is protracted beyond a few more days.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Most of the car companies today operate on a lean and stringent just-in-time production system where in there is continuous need for transport. Though Toyota and Honda took preventive measures by stocking up on key components but time is running out and a further extension of the strike will affect production.
The transport body All-India Motor Transport Congress (AIMTC) has called the strike to lobby against the method of service tax collection. They demand that the sales tax department or the excise tax department, rather than the transporters, collect the tax.
Last year, Toyota faced truckers’ ire in a 14-day strike, which forced it to stop production. Ford and Hyundai were also affected by crippled supplies. The reason for the April 2003 strike was the frequent rise in the price of diesel, and plans to introduce VAT and scrap 15-year-old trucks.
Deepesh Rathore / Tilak Swarup
