Jamshedpur auto parts hub in dire straits | SupportBiz

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Jamshedpur auto parts hub in dire straits

Lack of trust among the manufacturers in the auto parts industry in the Jamshedpur district of Jharkhand is hampering the smooth running of the industry. Most of the manufacturers in the industry do not trust each other and refuse to co-ordinate with other industrialists.

There are  about 500 firms in the industry, employing over 25,000 people. The industry has a  collective annual turnover of over Rs. 50 crore.  The industry, which is considerably big in size,  largely manufactures various types of auto parts,  like engine parts, steering wheels and brakes,   among other products .

“This is an old industry, which mostly  comprises of micro units that sell their products to major automobile manufacturing brands. We also  sell our products to various other manufacturers  all over the country,” said Sanjeev Singh, one of the manufacturers.

“The major reason for the slowdown  in growth of this industry is the lack of trust between the  manufacturers. There is no co-ordination  between them,  which results in a lack of  unity in the community, obstructing the smooth functioning of the industry. We have to face various other  issues due to this problem,” he added.

“We are also facing problems  like lack of linkages with  technical and testing centres as well as lack of promotion  and exports of products.  Moreover, we  do not produce  all  automobile parts. We are  unable to find  solutions to our problems due to  lack of co-ordination between  the industrialists,” said Sagar Kumar, another manufacturer.

“There should be an association to represent this industry, and to  help develop a certain level of trust between the manufacturers. It could also bring forward the problems and demands of the industrialists,  and help them grow, ” he said.