After the serious conflict at one of the units of Maruti Suzuki at Manesar, the problems are simmering again in this belt which was otherwise attracting large investments and creating job opportunities. Some of the automobile units have already set up their expansion plants outside the state feeling pressure from the trade unions.
The area has emerged as one of the major automobile hubs of the country, thanks mainly to Maruti-Suzuki plant and others like Hero group's plant. A large number of ancillaries have come up in the area and some of them have scaled up their status from ancillary to medium and large units. Many global auto vendors have also set-up their manufacturing plants in the area which is off late witnessing a spate of labour troubles.
“There should be a fast realization amongst the workers and the government that the industry has to survive in highly cut-throat-global-competition," said the Secretary General.
Newcomers like Hyundai, General Motors, Ford, Renault-Nissan and Volkswagen have chosen to go to new automotive hubs like Chennai and Pune. Tata Motors has located the factory for its Nano at Sanand in Gujarat. Other car makers too have talked of investing in the state. Ford, for instance, has committed investments of Rs 4,000 crore for a second unit in the state
“The workers in the auto units have a competitive advantage in terms of salary and perks and in many instances better than the IT, BPO and ITeS workers who are having a job in different circumstances,” added Mr. Rawat.
As many as 300-400 large to mid-size component units have come up in the region on an investment of $5 billion. The turnover of the industry is estimated at least $15 billion per annum, and it provides employment to 8,00,000 -10,00,000 people,” according to the chamber estimates.