Pithampur auto industry seeks sops to turn around

The Pithampur auto industry is seeking incentives from the government to tide over difficult times. During the year, the auto town witnessed a downward trend with production declining 40 per cent.

The industrial area in Madhya Pradesh houses auto ancillaries and commercial vehicle manufacturers besides makes of auto components like brake and fuel pipes, and automotive gears.

Major auto players located here include VE Commercial Vehicles Ltd (formerly Eicher Motors Ltd), Force Motors and Man Force Ltd.

According to the Society for Indian Automobile Manufacturers, the commercial vehicle segment has suffered the most.

Eicher Motors, which manufactures commercial vehicles, produced only produced 1,775 units (medium and heavy commercial vehicles and passenger carrier) in 2008-09 as against 2,222 during 2007-08. Similarly, the cumulative production of the company under the goods carrier category declined to 12,299 units in 2008-09 from 21,667 units.

Under light commercial vehicle (passenger carrier category), the company produced 1,550 units in 2008-09, as compared with 2,075 units produced in 2007-08. It produced 3,292 units under the goods carrier category (LCVs) as against 4,265 units during the previous year.

Similarly, Force Motors produced 4,974 units of utility vehicles as against 8,190 units in 2007-08. The total production of the auto industry during 2008-09 stood at 218,228 units as against 246,038 units in the previous year. The company also produced 3,922 light commercial vehicles (passenger carrier category) as compared with 4,719 units produced in 2007-08.

However March proved to be better month with the company producing 277 units of LCVs as against 266 in 2007-08.

“Though various incentives by the Centre is expected to help the auto industry in the coming months, we will still continue to see lower volume levels,” said Rajendra Prasad, past president of Confederation of Indian Industry Madhya Pradesh chapter.