Makers of auto components fret over long closure of units

CHENNAI: While the major automotive companies in Tamil Nadu have resumed operations, the auto component manufacturing units are a worried lot. They are yet to get a green signal from the government to start operations.

The micro, small and medium enterprises (MSME) engaged in auto component manufacturing in and around Chennai have expressed resentment against the "inequitable way" in which industries have been permitted to resume functioning. The sector has alleged that they have not been given permission to open, citing increased number of Covid-19 cases. The move will make survival of the auto component sector in the state difficult.

"We have already suffered huge losses earlier due to the shifting from BS-IV to BS-VI models. We have been closed during the lockdown. The delay in opening our units will just add to our losses," said AN Sujeesh, president, Ambattur Industrial Estate Manufacturers’ Association. Ambattur is a major hub of auto component units.

Sujeesh further added that automotive companies have resumed operations and to avoid any disruption in supply chain, the companies are seeking to shift tools and moulds from these small units to other bigger units that are open for operations.

"If once tools are shifted from our units, we will never be able to get back our business. This will lead to loss of orders and difficulty in retaining existing clients," claimed Sujeesh.

Moreover, he added that the migrant labour workforce housed in the estate units have been waiting to restart work. The delay in opening their units will affect them badly.