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Gujjars' agitation hits auto industry

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Danny Goodman New Delhi
Last Updated : Jan 29 2013 | 12:59 AM IST

In Gurgaon and adjoining Dharuhera, companies including Hero Honda witnessed varying levels of productivity losses due to the agitation.

Most auto companies located in the affected areas told Business Standard that the decision to keep factories closed today was a precautionary move aimed at ensuring the safety of the employees and the factories. "Employees who reached the factory by 6 am in the company's buses could avoid the agitators, but the rest who came later could not make it," said a source at Delphi Automotive Systems. "We managed today's production with a skeletal staff strength. Employees were shut in all day for their own safety."

The auto clusters located in the Greater Noida, Gurgaon and Faridabad regions reported disruptions in the delivery of components to their factories as a result of the unrest. "There has been a marginal impact on our supply chain due to disruptions in transportations," read a Hero Honda statement.

While it may be difficult to arrive at productivity losses due to complete and partial closure of manufacturing facilities today, it is easy to peg company-wise losses. Yamaha, which manufactures about 500,000 motorcycles per year, refused to divulge its one-day losses, while Honda Siel said the daily number could be in the range of 300 cars. "However, one-day losses could be easily recovered by working extra day," said a Honda Siel spokesperson.

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