Farmers' protests could disrupt auto production: Report
The farmers' protest against the Centre's new farm legislation entered its seventh day on December 2.
farmers protests,farmers protests delhi,farmers protests news, / December 02, 2020 / 10:46 AM IST
The Indian government and protesting farmers were unable to reach common ground in talks held on December 1, with the farmers saying their demonstrations against new agriculture laws will continue as will their blockades of key highways. (Image: AP)
The protests by farmers at the Delhi-Haryana border could hurt automobile production and even impact demand momentum in the short term.
The disruptions could disrupt supply chains crucial for smooth production of automobiles, The Economic Times reported.
Moneycontrol could not independently verify the story.
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The farmers' protest against the Centre's new farm legislation entered its seventh day on December 2. Talks between the central government and farmers on December 1 were inconclusive.
Deepak Jain, president, Automotive Component Manufacturers Association told The Economic Times that the protest could disrupt the industry logistics since Haryana is a major components hub.
"We hope the situation stabilises soon as it will be a pity to lose production and demand during these times when the industry has just started to recover volumes," said Jain, who is also the Managing Director of Lumax India.
"The outbound and inbound movement of goods is impacted, resulting in supply-chain disruptions," Hemant Sikka, President, Farm Equipment Sector, Mahindra and Mahindra told the paper.
Tractor makers told the publication that the protest is unlikely to significantly hurt sales since the buying season has almost ended.
"By Diwali, the buying season gets over and now the season for buying tractors will begin in February next year," TR Kesawan, president, Tractors Manufacturers Association.