Transport strike begins to bite manufacturers

“Though we had piled up sufficient amount of components, the strike has started pinching us from today (Wednesday) and if the supply of components gets affected totally, production will have to be shut in the next 3-4 days,” M&M chief operating office Pawan Goenka said.

As far as supply of vehicles to dealers’ end was concerned, only ‘Scorpio’ multi utility vehicle might take a hit due to dependence on trucks. The company had stockpiled components to meet production needs of three days.

Credit rating and advisory firm ICRA’s economic advisor Saumitra Chaudhuri also said that the its impact on the economy would also start showing in the next few days.

Transporters are on a nationwide strike for the fifth day demanding withdrawal of 10 per cent service tax. National Democratic Alliance which went to prime minister Manmohan Singh with their suggestions on the budget made a case for withdrawal of the service tax, said convenor of Indian Foundation of Transport Research and Training SP Singh. The strike has assumed political importance since five states are scheduled to go for elections in October. Sources said that the government is refusing to buckle under pressure but is waiting for the strike to fizzle out. Transporter community is already divided over the issue.