The slowdown gripping the auto sector has pushed foundries to the brink. Declining auto sales have resulted in a deterioration in demand for forgings, which could impact jobs unless things improve, a top industry official said.
“Currently, there is a huge inventory build-up due to poor demand, and to curb this, many forging units have been making cuts in working hours and production,” S. Muralishankar, president, Association of Indian Forging Industry and Joint MD, Super Auto Forge, told The Hindu .
“If [this] continues, we anticipate further cut in production, leading to job loss,” he added. “The Centre must take a holistic approach to revive the auto sector.”
Trends have shown that despite the onset of the festive season, there had not been any major improvement in overall demand, he said. The forging industry is witnessing a slowdown in the range of 25-30%, he added. “The forging sector employs more than 3 lakh. If the situation does not improve, 20% of these people can lose jobs.”
