The Federation of Indian Micro and Small & Medium Enterprises (FISME) has reached out to the Society of Indian Automobile Manufacturers (SIAM) to address the rising input costs faced by MSME auto component suppliers. In a letter dated May 14, FISME Secretary General Anil Bhardwaj highlighted the extraordinary cost escalations due to increasing wages, energy prices, and raw materials, exacerbated by geopolitical tensions in West Asia. FISME called for temporary cost-sharing arrangements and faster approval of price revisions to help MSMEs cope with these challenges.

The letter pointed out that while vehicle manufacturers operate under protective tariffs, MSME suppliers face fierce global competition and have limited pricing power. Recent labor unrest has led to wage increases averaging 20% in Uttarakhand and 35% in Haryana, further straining their financial viability. Input costs have risen dramatically, with consumable oils and raw materials increasing by over 35% since March 26. FISME stressed the importance of recognizing that the health of India's automobile industry depends on the sustainability of its MSME suppliers, urging SIAM to foster a collaborative approach to support these critical players in the supply chain.