Acute labour problem may encumber India’s goal to become global hub for small cars

Labour issues prevailing in India will surely hamper India’s dream of becoming the global  hub for small cars because of the rising shortage of skilled workers and slow pace of expansion by auto component makers, according to market research firm JD Power. In its report ‘India Automotive 2020: The Next Giant from Asia’, JD Power said the country’s ambition to become a global small car production base confronts some serious manpower related obstacles such as lack of skilled labour force, high labour cost and workers’ low efficiency and productivity. “The risk of union-related labour problems is omnipresent in India, since many labour unions are affiliated with political parties. As a result, local politics frequently interferes with business operations,” the report said.