Truckers’ Strike Hits Auto Industry’s Production Plans

Truckers’ Strike Hits Auto Industry’s Production PlansTruckers are demanding a reduction of taxes on petroleum products (T.C. Malhotra/Getty Images)

The indefinite strike called by All India Motor Transport Congress (AIMTC) since July 20 has affected production plans of major automotive players in the country, The Economic Times has reported.

Transporters have been demanding reduction in central and state taxes by bringing petrol and diesel products under Goods and Services Tax (GST). The nationwide strike by the transporters has been going on without any breakthrough between government and the union.

The strike has forced Tata Motors, Skoda and Ford India to adjust their production plans as it has affected the supplies of parts and distribution of vehicles. The Tata motors spokesperson declined to comment on block closures of its Pune and Sanand plants citing the silent period ahead of the company’s first quarter result.

Ford India President and Managing Director Anurag Mehrotra told the Economic Times that the strike was affecting domestic movement of parts and vehicles. He added that it could impact exports as well as container association may join the protests.

The Skoda plant of Aurangabad had also faced a shutdown due to supply constraints of parts. A quick resolution of the strike is essential as livelihoods in several sectors are being affected by the strike.