Ludhiana's small auto parts makers want govt support | SupportBiz


Ludhiana's small auto parts makers want govt support

Smaller auto component manufacturers in Ludhiana would fare better if the Punjab government provided them with subsidies and cheaper business loans, according to manufacturers.

Auto parts manufacturers in Ludhiana are growing, despite the lack of government support, but the smaller players could do with a government boost, according to component makers.

“The auto parts industry in Ludhiana includes over 5,000 manufacturing units and which together employs over two lakh people,” said Gurmeet Singh, a manufacturer of auto parts.

“Ludhiana is home to small to large auto parts manufacturers. Earlier there were around 2,000 units but now that number has more than doubled”, Singh said.

“The reason for the increase in the number of units is the increase in the demand for auto parts. Large automobile  companies such as Maruti Suzuki, Honda, Hero Motors, Sonalika, Bajaj and TVS outsource work to manufacturing units in Ludhiana,” he said.

“The demand for auto parts is always on the rise thanks to new launches . There is no shortage of work for us,” said Chandan Kumar another manufacturer.

“We do have our share of problems – the high rate of excise duty, increases in the prices of diesel, labour shortages and irregular power supply. The State government has never supported the auto component manufacturers in the state,” said Kumar.

 “The bigger players manage their expenses without any help form the government but the smaller manufacturers need government support in the form of subsidies or loans at lower rates of interest,” said Gauri Shankar, a small manufacturer.