On the lower rungs of the service sector, barbers and tea stall owners said they had fewer customers.Gurmeet Singh had been earning 10,000 rupees a month until he lost his job at auto component maker Bellsonica in Manesar.The industry has three main centers; Gurugram in the North, Chennai in the South, where among others Ford Motor and Hyundai Motor have plants, and Pune in the West, where Tata Motors and Fiat are located.Shoe seller Subhay Singh, in Manesar’s Aliyar village, has days when he doesn’t make a single sale. Six months later, back in his hometown of Ambala in Haryana state, Singh is still looking for a job, and catastrophising about the future.As the crisis in the sector bites harder small businesses in the towns and villages around Manesar, home to one of the three plants where Maruti Suzuki cars are made, have seen a fall off in trade.”If I don’t get a job, how will I build a house for my family, get married and pay off the loan my parents took to educate me?” he said.”If I am not able to rent out all the rooms I currently have, how will I manage with more?” said Chauhan..”My monthly earnings have halved,” said Singh, who a year ago made an average 8,000 rupees a day.His bleak outlook reflects an increasingly grim big picture.
His son won’t be getting the new car that Chauhan planned to buy him this year, and the landlord has also shelved plans to build another 100 hostel apartments.A year ago, Vinod Chauhan had no vacancies at all in the 70 rooms he leased primarily to migrant workers in Manesar’s Kasan village.”If the economy is buoyant then even the rural consumer will not mind paying a little extra.These are hard times for an area dependent on the fortunes of companies like Maruti Suzuki, the carmaker with the largest market share in India, and motorbike maker Honda Motor Co’s local unit. Today, over a third of those rooms are vacant and Chauhan fears things could get worse before they get better.”There are already fewer workers in the village and those who still have jobs are either not getting paid for working overtime or are not spending as much out of fear they may lose work and need the money,” said grocer Rahul Jain, his shelves stacked with toothpaste and soaps from fast-moving consumer goods companies like Hindustan drive brushless geared e-bike motor Unilever Colgate-Palmolive and Dabur India. The slowdown has merely gained prominence now,” said Arindam Som, analyst at India Ratings, a Fitch group company, adding that he expects auto companies to further cut production.
But this (slowdown) has acted as a catalyst to the drop in demand,” said Mayank Shah, product category head at Parle.The narrow lanes in Aliyar and Kasan villages in Manesar, an automotive manufacturing hub on New Delhi’s southern outskirts, would usually be packed on Sundays with migrant workers employed at the nearby plants enjoying their day off, but not anymore.Under pressure from businesses and investors to provide more stimulus, Finance Minister Nirmala Sitharaman proposed a series of measures last month to help the economy and financial markets but some economists said it would not be enough to revive long-term demand.RESISTING A BISCUITAll this is cast against a backdrop of a weakening world economy, and uncertainties arising from the trade war between the United States and China.”The real revenue growth for auto and consumer goods sectors started declining nearly two years ago.” In India, the impact goes well beyond the stock market.India’s automotive industry is the fourth largest in the world, employing more than 35 million people, directly and indirectly, and accounting for nearly half of India’s manufacturing output.07).
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