Manesar losing auto hub status, real estate takes a hit

Fearing that the Gurgaon-Manesar belt may lose its “status” of fast emerging auto hub conceding the advantage to the Southern Western states, ASSOCHAM, India’s top industry body, has asked Haryana government to intervene effectively to ensure that the labour-related issues are sorted out at the plants level itself.

Expressing concern at the renewed labour trouble in the area, this time at the facility of another group, the chamber said the conflicts in the plants would result in making the existing units unviable while no new investment will flow in the belt to a great detriment of the local population.

“Therefore, the Haryana government must intervene so that the peaceful industrial relations in this belt of Haryana don’t suffer which ultimately will be a hit to the state economy," said ASSOCHAM Secretary General D S Rawat in a statement. 
    
After a bloody conflict at one of the units at Manesar, the problems are simmering again in this belt which was otherwise attracting large investments and creating job opportunities. Some of the automobile units have already set up their expansion plants outside the state feeling pressure from the trade unions.

The continued labour crisis, which forced other automobile giants to seek space in Tamil Nadu and Gujarat, the chamber felt that such development, if continues, will affect the real estate development in the belt.

The area has emerged as one of the major automobile hubs of the country thanks mainly to Maruti-Suzuki plant and others like Hero group's plant. A large number of ancillaries have come up in the area and some of them have scaled up their status from ancillary to medium and large units. Many global auto vendors have also set-up their manufacturing plants in the area which is recently witnessing a spate of labour troubles. 

 "There should be a fast realization amongst the workers and the government that the industry has to survive in highly cut-throat-global-competition," said the Secretary General.

Newcomers like Hyundai, General Motors, Ford, Renault-Nissan and Volkswagen have chosen to go to new automotive hubs like Chennai and Pune. Tata Motors has located the factory for its Nano at Sanand in Gujarat. Other car makers too have talked of investing in the state. Ford, for instance, has committed investments of Rs 4,000 crore for a second unit in the state.

“The workers in the auto units have a competitive advantage in terms of salary and perks and in many instances better than the IT, BPO and ITeS workers who are having a job in different circumstances”, added Rawat.

As many as 300-400 large to mid-size component units have come up in the region on an investment of $ 5 billion. The turnover of the industry is estimated at least $15 billion per annum, and it provides employment to 8,00,000 -10,00,000 people", according to the chamber estimates.