The truck strike in India rolls on relentlessly and automakers have started feeling the pinch. Toyota-Kirloskar Motor has now early annual maintenance at its plant in order to avoid the brunt of the dispute.
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The company, which uses a just-in-time components delivery schedule is one of the worst hit as some of its key suppliers are located in the northern part of the country from where parts are shipped by Mitsui.
This is not the first time that a truck strike has affected Toyota’s Indian operations – last April, the plant was forced to halt production. That strike, which lasted two weeks, was called to protest the frequent rise in diesel prices, the plan to introduce value added tax and the move to compulsorily remove 15-year-old trucks from service.
Other auto manufacturers continue to battle on during the strike. Though motorcycle and scooter manufacturer Kinetic Engineering is expected to announce a plant closure Friday if things do not improve.
The truck strike, called by the All India Motor Transport Congress (AIMTC) on 21 August to protest of the implementation of service tax, doesn’t appear likely to be resolved soon. Discussions held early on Friday failed to reach any agreement and the government has now arrested key office bearers of AIMTC under the Essential Commodities act.
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By GlobalDataDeepesh Rathore / Tilak Swarup
