Gurgaon, Apr 16 (KNN)  Small enterprises in Gurgaon are under pressure from the surging demands of workers to increase wages.

The worker petitions come following similar demands by workers of auto giants mainly located in Gurgaon who after pressing their managements for wage hikes had their demands met, a media report said.

The issue has raised concern amongst the small and medium enterprises (SMEs) that dominate the auto parts industry as they had already been hit by a fall in sales in 2012-13.

Indian car sales in February 2013 declined by 25.71 per cent the lowest in 12 years.  The total sales of vehicles across categories registered a decline of 5.5 per cent to 14,51,278 units in February 2013 as against 15,34,910 vehicles in the same month of 2012.

According to a supplier, the OEMs (original equipment manufacturers) already had substantial inventories.  Hence fresh orders were lower than earlier projected.  Further, dwindling sales had made a dent in their profitability, making it difficult for them to absorb wage revisions at the rate that the OEMs have offered their employees.

He revealed that the demand schedule provided by the OEMs for the month of April indicated a 15 per cent reduction compared to April last year.  Most of the SMEs that Business Standard spoke to have been operating at 60-70 per cent capacity.

"We are not averse to wage revision but it should not hit our bottom-line," said a vendor. Clearly, the revision in fuel prices and power tariffs, shrinking demand and wage hikes have combined to put pressure on small enterprises.

Gurgaon is dotted with auto ancillaries catering to both the domestic and the export market. Both categories of ancillaries have been hit, but those supplying to overseas players are worse off.  (KNN)