US auto strike puts Indian ancillary hubs on the edge
wage hike. This is the first time UAW has launched a simultaneous strike against all three automakers, according to the Financial Times. The strikes led to factory shutdowns in Michigan, Ohio, and Missouri.
In FY23, exports to North America accounted for 30% of the Indian auto ancillary sector’s export revenue of $6.5 billion, positioning it as the single largest market for India. Tier-1 suppliers catering to North America, including Sona Comstar, Sundaram Fasteners, Bharat Forge and Motherson Group, may be hit if the strike continues. In 2019, UAW’s protests against General Motors saw 49,000 workers walking out of 50 factories in the US.
The strike lasted for over 40 days. This time, industry experts expect a faster resolution, as political intervention to bring the talks to a close are likely to have an impact in an election year. On Monday, the third day of the strike, which began on 15 September , Sona Comstar, a leading supplier of critical electric vehicle components and automotive systems to original equipment manufacturers across the world, informed India’s stock exchanges that it is closely monitoring the situation.
“We would like to inform that UAW went on strike at some of the plants of three OEMs on 15 September, 2023. The Company supplies to these three OEMs in the US, directly or indirectly. We are monitoring the situation closely.
There is minimal impact on the sales of the company currently, but there may be higher potential impact if the strike persists for long or extends to other plants," Sona Comstar said in a statement to the exchanges. Around 45% of Sona Comstar’s revenues come from the US, or 20% of its export volumes come from the Big Three in North America, excluding Mexico. “Companies with
. Read more on livemint.com
