Auto industry's pain percolates to other businesses
India TV NewsThe consumption slowdown that dented auto industry' sales and production has now percolated to the local economy, causing hardships to thousands of small businesses that supply parts along with services like logistics to the key manufacturing sector. "Part suppliers are the backbone of manufacturing and they along with their sub-vendors are the first to get impacted by the slowdown," Rajesh Shukla, General Secretary of Hero MotoCorp Workers Union, told IANS. The fall-out of the slowdown can be gauged from the fact that the auto industry contributes around half of manufacturing GDP and 11 per cent of the total GST revenue. Consequently, sales slowdown led to a curtailment of manufacturing with the domestic passenger cars' production coming down by 22.26 per cent to 169,594 units in June.