The maker of General Motors and Toyota's parts in India is folding up — axing thousands of jobs

• Homegrown automotive multinational Jamna Auto Industries(JAI) is planning to shut down all of its plants this month due to the global slowdown in auto sales.
  
• It is the third largest suspension spring manufacturer across the globe.
  
• JIA’s clients include General Motors Co, Toyota Motor Corp, Tata Motors and Mahindra among others.
  
• Auto parts maker Bosch also announced that it will close operations at two of its production units for 13 days straight in August.

Sluggish growth and falling sales over the last nine months has led to auto dealerships and plant shutdowns. Now, the time has come for auto parts makers to fold up.

Homegrown automotive multinational Jamna Auto Industries (JAI) and the third largest suspension spring manufacturer across the globe, is planning to shut down all of its plants this month due to the global slowdown in auto sales, Reuters$4. It has nine manufacturing units across India.

JIA’s clients include General Motors Co, Toyota Motor Corp, Tata Motors and Mahindra. It is also the largest maker of tapered leaf springs and parabolic springs for automobiles.

According to a Bloomberg$4, the company has 70% market share in domestic original equipment segment and manufactures is 250,000 million tonnes per annum across units.

“In view of the weak customer schedule and high inventory, the company has made changes in production schedule at all its plants. The plants may not run or partially run on all working days in August,” Jamna Auto $4 Reuters.

The industry has laid off nearly 350,000 employees in the last four months. Of this, 100,000 jobs were lost at auto parts manufacturing units.

Cost-cutting

This was long overdue as top car manufacturers like Maruti Suzuki, Nissan, Bajaj Auto and Tata Motors have cut production.

Yet another auto parts maker Bosch, too announced that it will close operations at two of its production units for 13 days in August.

"With a view to adjust production to meet the demand for products and to avoid unnecessary buildup of inventory, it is proposed to suspend all manufacturing operations at the Company's plants," ET $4 quoting the company’s regulatory filing.

In fact, the largest carmaker company Maruti Suzuki has also decided to $4 at all its manufacturing plants as a cost cutting measure.

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